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WAR  DIARY 


• 


German  Naval  Staff 
Operations  Division 


PART  A         VOLUME  47 


■,X  1972,   SUBJ4 


JULY  1943 


-D 


ditorial  Note: 

The  translation  of  this  German 
War  Diary  was  made  in  London,  England,  under 
the  guidance  of  Commander  C.R.  Sanders,  USNR. 
When  his  London  Office  was  closed  and  the  trans- 
lation n-roject  was  discontinued,  much  unfinished 
material  was  sent  to  Naval  History  Division 
(Op-29).   Volumes  of  these  :liaries  have  been 
periodicallv  distributed  as  funds  and  other  con- 
ditions permitted. 

1'he  translations  and  stencils 
have  not  been  checked  bv  Naval  History  Division 
for  accuracy  of  interpretation,  ohraseology,  and 
soellinp  of  officers1  names  or  geo^raohical 
na^es.   Distribution  under  these  conditions 
seems  justified  because  of  the  excellent  refu- 
tation of  the  London  ne^sonnel  and  because 
translators  are  not  available  in  Naval  History 
Division.   Research  to  correct  possible  incon- 
sistencies did  not  warrant  the  time  involved. 

The  Var  Diaries  of  the  German 
Naval  qtaff ,  I  pe^a+ions  Division,  °art  A.,  are 
important  because  they  contain  a  dav  b^  day 
summary  of  the  information  available  to  the 
German  Naval  Staff  and  the  decisions  reached 
on  the  basis  thereof 


DEPARTMENT  OF  THE  NAVY 
Office  of  the  Chief  of  Naval  Operations 
Naval  History  Division 
Washington  25,  D.  C. 
1958 


D*Ef 


n   oF  Zfl   "72,  SUBJl 


By  Officer  only  I 
WAR  DIARY  OF  THE  GERMAN  NAVAL  STAFF 
(Operations  Division) 


Chief,  Naval  Staff:  Great  Admiral  Doenitz 

Chief. of  Staff,  Naval  Staff:  Vice  Admiral  Me is el 

Head  of  Naval  Staff,  Operations  Division:   Rear  Admiral  Wagner 


Volume  47 

beginning:       1  July  1943 
closed:         31  July  1943 


CONFIDENTIAL 
1  Jul.  1943 

Items  of  Political  Importance 

In  a  speech  at  the  Guildhall  on  30  Jun.,  Churchill  predicted 
heavy  fighting  in  the  Mediterranean  and  elsewhere  "before  the 
fall  of  the  leaf".  He  further  stated  amongst  other  things,  that 
during  May  more  than  30  submarines  were  destroyed  in  the  Atlantic 
while  in  the  month  of  June,  the  Allied  Nations  had  produced 
seven  to  ten  times  as  many  new  ships  as  had  been  lost  by  enemy 
action.  Since  the  middle  of  May,  hardly  a' single  merchantman 
had  been  sunk  in  the  entire  North  Atlantic.  Referring  to  the 
bombing  of  the  Ruhr  area,  Churchill  declared  that  there  would 
be  no  industry  or  military  target  in  Germany  that  would  not  be 
exposed  to  the  utmost  to  the  forces  of  destruction  as  soon  as 
the  nights  became  longer  and  the  U.S.  Air  Forces  more  numerous, 
A  detailed  excerpt  of  the  speech  is  contained  in  the  "Foreign 
Press  Report"  of  10  July.  The  speech  is  especially  noteworthy 
because  it  deals,  in  apparently  carefully  chosen  words,  with  the 
relations  between  the  British  Empire  or  Commonwealth  and  the  USA, 

According  to  Reuter,  the  U.S.  Secretary  of  the  Navy  Knox  has 
told  high-ranking  Army  and  Navy  officers  that  the  USA  and  the 
Allies  will  have  to  face  a  long  and  serious  war  which  may  still 
last  for  3-4  years. 

Special  Items 

I.  It  was  proposed,  subject  to  anticipated  approval  by  the 
Italians,  that  the  Italian  submarines  "ERIN11  and  "DAND0L0"  now 
being  converted  into  transports  in  Italy  be  loaded  for  outward 
passage  at  the  German  submarine  base  at  Toulon.  See  order  l/Skl 
I  ga  1343/43  Gkdos.  Chefs,  in  War  Diary,  Part  C,  Vol.  IX. 

II.  Chief,  Naval  Staff  has  returned  from  visiting  the  Chiefs 
of  Staff  of  the  Army- and  the  Air  Force.  His  notes  are  entered 
in  War  Diary,  Part  C,  Vol.  Apa  (Personal  reports). 

Situation  1  Jul.  1943 

I.    War  in  Foreign  Waters : 

1.    Enemy  Situation: 

According  to  a  Chilean  report,  about  20  (j)  tankers 
per  week  are  said  to  have  transited  the  Magellan  Straits  in  both 
directions  between  January  and  March. 


-1-  CONFIDENTIAL 


CONFIDENTIAL 
1  Jul.  1943 

It  is  reported  from  India  that  large  quantities  of  trucks,  am- 
munition and  artillery  were  unloaded  in  Karachi,  Bombay,  Colombo 
and  Kochin  from  U.S.  ships  which  had  been  brought  in  convoys  via 
St.  Helena  -  Mauritius* 

According  to  a  report  from  a  British  agenc3>-,  the  Swiss  govern- 
ment lias  ascertained  that  the  British  steamer  ilAivKEN  was  captured 
by  the  Japanese  on  her  way  from  Sidney  to  India.   The  crew  of 
150  men  and  112  passengers  who  had  already  been  given  up  are  all 
well  in  Japan, 

The  NANKIN  was  captured  by  Ship  "10"  on  15  Hay  1942  and  taken 
to  Japan  as  a  prize.  It  is  strange  that  the  British  should  have 
had  no  information  on  the  ship  so  long  after  her  arrival  in 
Japan, 

On  the  evening  of  30  Jun„,  Radio  Intelligence  intercepted  an  in- 
complete QQQ-message  from  an  unidentified  US  steamer  in  about 
30c  S,  100°E,  repeated  by  Kilindini.  This  is  probably  connected 
with  our  own  operations,  (Ship  "28"), 

2°    Own  Situation: 

Naval  Staff  transmitted  the  above-mentioned  QQQ- 
report  from  Kilindini  to  Ship  "28"  by  radiogram  0315  and,  in 
radiogram  1155,  added  its  assumption  that  this  emergency  call 
was  a  result  of  the  activities  of  Ship  "28".  Naval  Staff  has 
no  information  as  to  the  size  and  type  of  the  US  steamer  "Kpbv", 

Naval  Staff's  request  to  Armed  Forces,  High  Command,  Intelli- 
gence Division,  Counter  Intelligence  Section  concerning  the 
date  cf  completion  of  the  blockade  runners  (removal  of  the  top- 
masts etc)  was  forwarded- by  letter  l/3kl  I  K  18583/43  Gkdos, 
Copy  in  War  Diary,  Part  C,  Vol.  I. 

II o   Situation  in  the  West  Area: 

1.  Enemy  Situation: 

Seventeen  planes  were  detected  in  the  Bay  of  Biscay, 
Our  air  reconnaissance  reported  one  destroyer  120  miles  south- 
west of  Finisterre  at  2355  on  30  Jun, 

2,  Own  Situation: 
Atlantic  Coast: 


-2-  CONFIDENTIAL 


CONFIDENTIAL 
1  Jul.  1943 

One  SLM/J-mine  was  cleared  off  Lorient  and  another 
off  La  Pallice  and  one  ELl-l/A-mine  was  cleared  off  Brest.  On 
30  Jun.,  tl  ere  were  232  fishing  vessels  at  sea  in  the  northern 
part  of  the  Bay  of  Biscay  and  77  in  the  southern  part.  A  French 
fishing  boat  was  attacked  six  or  eight  times  by  2  British  fight- 
ers in  BF  1974»  Two  fishermen  were  killed  and  four  injured. 
On  29  Jun.,  French  fishermen  resuced  two  US  airmen  in  a  rubber 
boat  30  miles  v/est  of  Quessant. 

The  8th  Destroyer  Flotilla  was  joined  at  0825  by  submarine  U 
"180"  and  another  submarine  in  BF  7&53«  Three  enemy  planes  were 
shadowing  the  formation.  Our  covering  planes  reported  that  a 
third  submarine  joined  the  group  which  was  reported  at  2300  to 
be  in  BF  8612. 

Channel  Coast: 

Escort  and  patrol  services  were  carried  out  as 
scheduled.  Nothing  to  report . 

In  regard  to  "Gute  Hoffnung",  Group  West  reports  that  5  Jul.  is 
not  a  date  for  the  departure  from  Kiel  and  suggests  postpone- 
ment to  about  2  Aug.  in  the  next  full  moon  period.  The  reason 
given  is  that  the  planned  operation  would  be  even  more  difficult 
than  moving  submarines  to  the  west  one  at  a  time  so  that  care- 
ful preparation  is  necessary.  Furthermore,  during  the  last  part 
of  the  trip,  the  moon  would  be  nearly  full.  It  is  not  possible 
to  submerge  at  Dunkirk  or  Boulogne  though  the  boats  can  lie  on 
the  sea  bottom  at  Le  Havre  and  Cherbourg. 

Naval  Staff,  Submarine  Division,  has  postponed  special  operation 
"Gute  Hoffnung"  to  the  beginning  of  August  (see  teletype  1910). 

III.  North  Sea,  Norway.  Northern  Waters: 

North  Sea: 

Torpedo  Boats  T  "2",  "5"  and  "18"  of  2nd  Torrncdo  Boat 
Flotilla  are  transferring  from  Hook  van  Holland  to  Wesermuende, 
Torpedo  boats  T  "24"  and  "25"  of  4th  Torpedo  Boat  Flotilla  have 
started  for  the  west.  In  the  area  of  Commanding  Admiral,  De- 
fenses Baltic,  five  ELM/j-mines  were  cleared  off  the  East 
Frisian  Islands.  Mine  Exploding  vessel  "11"  was  damaged  while 
clearing  mines  18  miles  south  of  Heligoland  and  put  in  to 
Cuxhaven  under  her  own  power.  About  noon,  one  of  our  convoys 
was  bombed  and  strafed  by  17  enemy  fighters  off  Hook.  The 
Swedish  steamer  BERNICIA  was  hit  by  a  bomb  and  had  to  be  beached. 
On  the  other  ships  only  slight  damage  and  some  casualties  occurred 
(15  severely  wounded).  Six  of  the  attacking  planes  were  probably 
shot  down  by  the  ships'  anti-aircraft  fire. 


-3-  CONFIDENTIAL 


ONFIDENTIAL 
I  Jul.  1943 

l-crvM,".    '..crtr.vrr:  V.'aters: 


1.  Enemy  Situation: 

Or.     arctic  Coast  there  was  one  Russian  submarine* 
Ten  planes  were  detected  in  operation  in  the  I^orth  Sea  area. 
2200  on  30  Jun.  reconnaissance  planes  si;     a  convoy  consist- 
ing cf  1  ti    :rt  and  14  merchantmen  with  20  escort  vessels  in 
the  Pentland  Firth  area  on  course  340°,  and,  in  the  forenoon  of 
1  Jul.,  1  steamer  of  4, OCC  3RT  on  a  southerly  course,  20  miles 
north  of  Soglufjord. 

2.  Own  Situation: 

During  the  evening  and  night  of  29  Jun.,  Russian 
batteries  fired  a  total  of  57  rounds  on  the  stealer  R'JIJA,  the 
harbor  area  at  Linahamari,  the  Cape  Romanov  battery  and  the  en- 
trance of  Petsamof jord.  The  Cape  Romanov  battery  returned  fir-: 
with  13  rounds. 

On  30  Jun.,  two  more  Russian  anti-submarine  in  ertia-contact 
mines  were  cut  in  the  Xvaenangenf jcrd. 

The  convoy  service  forces  escorted  27  steamers  and  1  submarine 
to  the  north  and  14  steamers  to  the  south. 

3nly  minor  enemy  air  activity  was  reported  on  30  Jun.  from  the 
Vardoe-3anak  and  Kristiansand  South  area.  Section  I  of  Mine 
Barrage  NW  30  was  laid  by  the  RCLAI.'D  on  28  Jun.  according  to 
plan* 

The  destroyers  Z  "27"  and  "30"  arrived  at  Narvik  at  2330  on  30 
Jun.  At  1200  on  1  Jul.,  together  with  store  ship  DITHARSCHEM, 
they  will  transfer  to  Alt  a  via  Tjeldscund,  by  -..-ay  of  the  fleet 
nnel. 

On  29  Jun.,  Group  "orth/Fleet  again  repeated  its  request  for  a 
total  of  9  boats  as  reinforcement  for  the  submarines  in  Northern 
a  since  only  3  boats  had  so  far  been  assigned.  Of  the  re- 
Lng  6  boats  required,  Naval  Staff,  Submarine  Division,  al- 
lotted 4  on  30  Jun.  (See  Vfar  Diary  30  Jun.).  Further  assign- 
ments will  be  decided  by  Chief,  val  Staff  upon  the  report  of 
Command! •    imiral,  Submarines,  after  5  July. 

For  relative  teletypes  §   l/Skl  1856  and  1871/43  Gkdos.  Chefs e 
see  War  Diary,  Part  :,  Vol.  Ha. 

IV,   Skagerrak,  Baltic  Sea  Sr.trar.c3s,  Baltic,  Sea: 

-4-  COKFJLDEj  77. _L 


CONFIDENTIAL 
1  Jul.  1943 

The  mineships  OSTiiARK,  EL3A33  and  BHLMISR  moved  from 
Kristiansand  South  to  Kiel,   One  ELM/j-mine  was  cleared  near 
Helsingocr  and  one  off  rliddelgrund.  The  Danish  steamer 
KRONBORG  (481  BRT)  sank  south  of  Copenhagen  after  striking  a 
mine* 

Escort  service  was  carried  out  without  incident  throughout  the 
Baltic  Sea  area.   The  sailing  school  ship  DEUT5CIILAND  anchored 
in  the  Duenamuende  roads.  Anti-submarine  Kite  UD  "5",  with  armed 
fishing  vessels  of  the  31st  Minesweeper  Flotilla,  is  at  sea  in 
the  Gulf  of  Riga  for  location  practice. 

A  new  oil  trace  was  attacked  between  Revalstein  and  Vaindlo. 

An  enemy  dug-out  in  the  Voranka  sector  was  wiped  out. 

During  the  night,  our  batteries  opened  fire  on  shipping  traffic 
in  the  Gulf  of  Kronstadt.   The  enemy  returned  400  rounds.   The 
"Bluecher"  and  "Korkuli"  batteries  were  hit  and  suffered  slight 
losses. 

V.  _  Submar_ine_  Warf are_:_ 

1 .  Enemy  Situation : 

No  special  reports  have  been  received, 

2.  Own  Situation: 

On  27  Jun.,  in  KR  48,  submarine  U  "511",  which  is 
being  delivered  to  Japan,  sank  the  newly  built  steamer  3EVASTIAN0 
BARIZNO  (7,000  BRT)  out  of  Suez  in  ballast. 

VI.  _A_eri  a  1  War  fare : 

British  Isles  and  Vicinity: 

The  3rd  Air  Force  had  196  planes  -  mostly  fighters  -  in 
operation  in  the  west  area  and  3  planes  in  the  Mediterranean. 
Near  Cape  Ortegal,  6  JU  88  planas  unsuccessfully  attacked  1 
Halifax. 

During  daylight,  attacks  by  enemy  fighter  formations  in  the  West 
area  were  mainly  directed  against  traffic  installations a   Four 
locomotives  were  destroyed.  In  the  night  of  1  -  2  Jul,,  the 
waters  around  Ameland  -  Terschelling  and  off  the  Atlantic  coast 
were  apparently  mined* 

Mediterranean  Theater: 

-5-  CONFIDENTIAL 


1  Jul.  1943 

Char  air  forces  continued  their  reconnaissance  activities. 
Enemy  light  bonkers  attacked  an  airfield  in  Sicily  without  re- 
sults. 

Eastern  Front: 

Nothing  to  report. 

VII.  "warfare  in  the  Mediterranean  and  Black  Sea: 

1 .  Enemy  Situation,  Mediterranean : 

The  NELSON,  and  4  destroyers  laft  Gibraltar  between 
145C  -  1840  and  apparently  carried  out  exercises  east  of  the 
harbor. 

At  2045,  one  of  our  submarines  reported  a  fast  westbound  trans- 
port convoy  (strength  unspecified)-  40  miles  northeast  of  Alboran. 

other  westbound  convoy  of  16  vessels  was  reported  at  1940  by 
our  air  recor-naissance  12  miles  northeast  of  Done.   The  big  con- 
voy movement  to  the  east  seems  to  have  been  completed. 

From  0845  to  0900,  our  fighters  on  reconnaissance  reported  a  for- 

.bion  of  2  battleships,  1  carrier 3   6  cruisers  and  2  detached 
torpedo  boats  travelling  at  high  speed  on  a  south erly  course  in 
the  area  30  miles  west  of  La  Galite;  at  the  same  time  bhere  was 
a  group  of  2  -  3  cruisers  and  2  destroyers  sailing  east  about 
20  miles  north  of  Bizerta  and  6  eastbound  PT  boats  east  of  La 
Galite. 

Twenty-five  big  freighters  were  anchored  in  the  roads  of  Bizerta 
at  0845«  At  1047,  a  convoy  of  12  steamers  with  9  escort  vessels 
was  sighted  25  miles  east  of  Derna  on  course  110°. 

One  submarine  was  reported  50  miles  southwest  of  Genoa  and  a- 
nother  on  the  southwest  coast  of  Crete. 

According  to  Radio  Intelligence,  air  raid  alarms  were  underway 
for  three  convoys,  one  in  the  Alexandria,  one  in  the  Tobruk  and 
one  in  the  Malta  areas. 

2,  Own  Situation,  Mediterranean: 

During  an  enemy  air  attack  on  Ca^liari  from  0045  to 
0150,  the  PT  boats  remained  undamaged. 

As,  according  to  air  reconnaissance,  the  c:     .eavy  combat  group 
was  still  in  the  waters  northeast  of  Bone  in  the  afternoon  and 


-6-  CONFIDENTIAL 


CONFIDENTIAL 

1  Jul.  1943 

evening,  3rd  and  7th  PT  boat  Flotillas  were  kept  at  immediate 
readiness  as  from  1900.  At  20CO,  4  boats  of  7th  PT  boat 
Flotilla  left  Cagliari  to  attack  the  enemy  formation.  One 
boat  returned  to  port  prematurely,  Further  reports  are  a- 
waited. 

Motor  ships  BRANDENBURG  and  POMMSRN  were  sighted  and  reported 
by  enemy  aircraft  in  the  night  of  1  -  2  Jul.  while  moving  from 
Naples  to  Maddalena. 

3 •    Sea  Transport  Situation : 

According  to  a  report  from  Commanding  General,  Armed 
Forces  South,  the  Italian  steamer  BOLZANETO  was  sunk  by  an  enemy 
submarine  near  Punta  Musco  on  29  Jun, 

No  special  reports  were  received  on  1  Jul, 

4.    Area  Naval  Group,  South: 

Aegean  Sea: 

At  0130,  the  motor  ship  KA.THARIIIA  reported  an  enemy 
submarine  2&  miles  southeast  of  Piraeus, 

The  BULGARIA,  together  with  1  Italian  destroyer  and  1  submarine 
chaser,  completed  the  mine  task  near  Rhodes,  For  Barrage  Area 
near  Rhodes,  see  teletype  1130, 

Commanding  Admiral,  Aegean  reports  that,  at  the  request  of  the 
Italian  Admiralty,  the  coastal  waters  of  Corfu  will  not  be  mined 
as  he  had  planned  but  the  south  coast  of'Zante  and  the  west  coast 
of  the  Peloponnese  will  be  mined  instead. 

Black  Sea: 


The  1st  PT  Boat  Flotilla  was  in  operation  on  the 
night  of  30  Jun,  north  of  Temrjuk  without  sighting  the  enemy. 
The  patrol  line  in  Temrjuk  Bay  reported  strong  enemy  air  ac- 
tivity and  bombs  dropped  near  the  boats  during  the  same  night. 

No  other  special  reports  were  received. 

Group  South  reports: 

"The  increased  transport  requirements  of  the  Army  and  the' pro- 
gressive building  up  of  Sevastopol  and,  on  the  other  hand,  the 
increasing  activity  of  the  Russian  Air  Force,  make  it  urgent  for 

-7-  COiiFIDENTIAL 


CONFIDENTIAL 
1  Jul.  1943 

the  Sevastopol  anti-aircraft  defense  to  bo  strengthened.  Other- 
wise the  success  of  our  long  and  toilsome  construction  work  will 
be  compromised  and  irreplaceable  shipping  jeopardized.  There- 
fore, for  the  reasons  already  reported,  it  is  again  urgently  re- 
quested that  the  Navy  take  over  the  anti-aircraft  defense  of 
Sevastopol  and  that  2  naval  anti-aircraft  divisions  be  assigned. 
If  the  manning  of  the  anti-aircraft  divisions  presents  difficul- 
ties, it  is  suggested  that  only  the  specialists  and  key  person- 
nel be  sent.  The  establishment  could  be  completed  on  the  spot 
hy   personnel  transfers  and  volunteers." 

The  matter  will  be  followed  up  by  Naval  Staff,  Quartermaster 
Division. 

VIII.  Situation  East  Asia: 

No  reports  have  been  received  from  Naval  Attache  Tokyo  on 
the  landing  of  American  units  on  Rendova  Island  (New  Georgia  group) 
as  announced  in  the  press.  The  Japanese  have  reported  the  sink- 
ing of  6  enemy  transports,  3  cruisers  and  1  destroyer.  Also, 
more  than  31  enemy  planes  are  said  to  have  been  shot  down  in 
fierce  air  battles.  Japanese  Army  formations,  in  close  coopera- 
tion with  the  Navy,  are  attacking  the  landed  enemy  forces,  de- 
tails of  whose  strength  are  not  yet  known. 

The  harbor  of  Rendova  on  the  island  of  that  name  is  situated  only 
8  miles  south  of  the  Japanese  air  base  at  liunda,  on  the  main 
island  of  New  Georgia. 

According  to  American  reports,  however,  only  1  transport  was 
lost  near  the  coast.  One  hundred  and  one  Japanese  planes  are 
said  to  have  been  shot  down  with  a  loss  of  17  American  planes. 

The  press  quotes  Secretary  Knox  as  stating  that  the  landing  at 
Rendova  is  the  beginning  of  an  offensive  in  the  Pacific. 


2  Jul.  1943 

Items  of  Political  Importance 

No  reports  of  naval  significance  have  been  received. 

Conference  on  the  Situation  with  Chief,  Naval  Staff : 

I.    During  the  Situation  report  made  by  Naval  Staff,  Operations 
Division,  Operations  Branch,  Chief,  Naval  Staff  raised  the  ques- 
tion of  what  could  be  done  to  combat  the  enemy1 s  anti-submarine 

-8-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

forces  which  are  able  to  maintain  permanent  control  of  the  border 
areas  of  the  Bay  of  Biscay  and  the  identified  submarine  routes 
practically  unhindered.   From  this  point  of  view,  retention  of 
8th  Destroyer  Flotilla  in  the  West  area  acquired  new  importance. 
A  request  for  an  increased  allotment  of  destroyers  would  be  un- 
avoidable. Group  West  must  be  ordered  to  investigate  the  matter, 

IIe   The  Chief,  Naval  Staff,  Naval  Intelligence  Division  sub- 
mitted the  checked  results  of  enemy  merchant  shipping  losses  in 
Jun.  1943.  For  Copy  as  per  l/Skl  19796/43  geheim  see  War  Diary 
File  "Enemy  shipping  losses  1943 •" 

There  is  no  comment  to  be  made  on  the  low  figures,  due  to  current 
circumstances,  except  to  express  the  confident  hope  that  this 
regrettable  set-back  is  only  of  a  temporarj'-  nature  and  will  be 
speedily  remedied  as  soon  as  all  the  measures  now  underway  for 
augmenting  the  fighting  strength  of  the  submarines  have  been  put 
into  effect, 

III,  Chief,  Naval  Staff  is  most  disappointed  by  Admiral  Riccardis' 
refusal  to  release  the  two  modern  Italian  transport  submarines, 
R0J10L0  and  RED,  to  act  as  rubber  transports  from  Japan  and  he 
intends  to  call  this  to  the  attention  of  the  Italian  Commanding 
Admiral  Submarines,  Admiral  Legnani,  who  arrived  in  Berlin  today. 
Riccardis'  letter  as  per  l/Skl  19091/43  Gkdos  is  filed  in  War 
Diary,  Part  C,  Vol.  IX.  Mo  reply  will  be  ;aade- until  after  the 
conference  with  the  Italian  Commanding  Admiral,  Submarines,  The 
request  for  release  of  these  two  boats  was  made  at  the  suggestion 
of  Captain  Grossi  who,  on  his  part,  had  strongly  recommended  the 
idea  to  the  Italian  Admiralty, 

According  to  the  information  of  Chief,  Naval  Staff,  Operations 
Division,  Admiral  Legnani  will  probably  also  raise  the  questions 
of  closer  cooperation  between  German  and  Italian  officers  and 
of  the  Italian  program  for  building  a  series  of  small  80  -  100 
ton  submarines, 

IV.  Chief,  Naval  Staff,  Operations  Division  reports  that  the 
Japanese  recently  informed  our  Naval  Attache  in  Tokyo  that  in- 
stead of  the  high-grade  Diesel  oil  required  for  our  submarines 
in  the  Indian  Ocean,  and  in  spite  of  their  previous  definite 
assurances,  they  can  furnish  only  low-grade  oil  such  as  is  used 
for  their  own  less  delicate  submarine  engines.  As  this  fuel  oil 
cannot  be  used  by  our  submarines,  the  Japanese  have  been  informed 
that  German  submarine  operations  in  the  Indian  Ocean  will  have 

to  be  cancelled  if  the  proper  oil  cannot  be  provided. 

Special  JJtj3msj_ 

-9-  CONFIDENTIAL 


CONFIDENTIAL  ' 
2  Jul.  1943 

I.  A  summary  of  Vice  Admiral  Weichold's  reports  as  of  the  end 
of  Jun.  1943  is  filed  under  l/3kl  I  op  1907/43  Gkdos*  Chefs,  For 
copy,  see  War  Diary,  Part  B,  Vol.  V„ 

II.  -  After  consultations  between  Chief  of  Staff,  Naval  Command, 
East,  Naval  Staff,  Operations  Division,  and  Naval  Staff,  Quarter- 
master Division,  Naval  Command  East  proposes  that  the  patrol 
forces  and  the  coastal  defense  flotillas  in  the  Baltic  Sea  from 
the  Skagerrak  to  Memel  be  combined  under  Commanding  Admiral  De- 
fenses Baltic  as  Commanding  Admiral,  Naval  Forces.  For  copy  of  ; 
the  relevant  teletype  as  per  l/Skl  18830/43  Gkdos.  see  War  Diary, 
Part  C,  Vol,  III. 

The  matter  will  be  examined  by  Naval  Staff,  Quartermaster  Division. 

III.  A  summary  of  data  on  the  enemy  obtained  by  Radio  Deciphering 
and  Radio  Intelligence  from  21-27  Jun.  is  (p. von  in  Radio  Monitor- 
ing Report  No.  26/43* 

Situ- ti on  on  2  Jul.  1943 : 

I.    War  in  Foreign  Waters: 

1.    Enemy  Situation: 

Nothing  to  report. 

2°    Own  Situation: 

Naval  Staff  has  informed  Ship  "28"  by  radiogram  as 
per  l/Skl  I  k  1894/43  Gkdos.  Chefs,  that  a  Japanese  submarine  - 
code  name  "Flieder"  -  left  Penang  on  27  Jun.  arid  will  pass  a 
point  3°  30'  to  the  north  and  1°  to  the  cast  of  "Besancon"  on 
9  Jul„ 

The  ship- was  also  informed  by  radiogram  2346  that,  on  27  Jun, 
in  KR  48,  our  submarine  MARCO  POLO  sank  a  newly  constructed  ship 
of  7,000  tons  sailing  from  Suez  to  an  unkrioxni  destination,  and 
that  on  1  Jul.  the  submarine  was  in  KG  69. 

The  CHARLOTTE  SCHLIEMANN  has  been  informed  by  radiogram  2257  of 
the  award  of  iron  crosses  in  recognition  of  her  good  performance 
in  supplying  submarine s„ 


Naval  Staff  plans  to  release  information  on  the  visit  of  Ship 
"10"  to  Japan  for  propa^/inda  purposes.   Naval  Attache,  Tokyo 
h^.s  been  instructed  to  obtain  the  paid  approval  of  the  Japanese 
Admiralty,  after  which,  and  upon  agreement  between  the  propaganda 


»10-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

authorities  of  both  countries,  the  information  will  be  published. 
The  Japanese  Naval  Attache,  Berlin  will  be  advised  accordingly 
by  Naval  Staff.  Telegram  1300  and  letter  l/Skl  I  k  18711/43 
Gkdos.  are  filed  in  l/Skl  I  k  /  VI. 

II.   Situation  West  Area: 


1*    Enemy  Situation: 

According  to  our  air  reconnaissance,  1  heavy  cruiser  * 
and  1  light  cruiser  were  in  BF  4872  on  course  320°,  at  high  speed, 
at  1000.  Reconnaissance  flights  in  the  Bay  of  Biscay  were  made 
by  33  planes  several  of  which  were  detected  in  the  area  north- 
west of  Cape Villano.  One  British  vessel  was  observed  in  BF 
443B  at  1845,  one  in  BE  66 50  at  1900  and  one  in  BE  4190  at  2006. 

The  German  motor  ship  BaLTIC  (300  BRT),  which  left  Bilbao  with  a 
Spanish  crew  on  23  Jun„  with  a  cargo  of  ore  for  Bayonne  and  did 
not  reach  its  destination,  has  been  taken  to  Gibraltar.  It  is 
alleged  that  the  crew  of  8  was  over  whelmed  by  4  men  on  leaving 
the  harbor.  The  Spanish  crew  has  been  taken  to  Algeciras. 

2.    Own  Situation: 

Atlantic  Coast: 

The  8th  Destroyer  Flotilla  has  submitted  its  report 
on  the  bringing-in  of  submarines  U  "180",  "518"  and  "530".  *  For 
copy,  see  teletype  1945  •  The  flotilla  suggests  that  future 
rendezvous  be  fixed  for  one  hour  after  dawn  in  order  to  avoid 
risk  of  the  vessels  missing  each  other.  The  flotilla  and  the 
3  submarines  entered  Royan  at  1830.   It  is  planned  to  move  the 
submarines  to  Bordeaux  on  the  morning  high  tide.  As  from  1500 
on  3  Jul.,  the  flotilla  will  be  at  immediate  readiness  for  fur- 
ther submarine  escort  duty. 

Channel  Coast: 

Due  to  bad  weather  the  patrol  positions  were  not 
taken  up.  Two  Ate-mines  were  cleared  south  of  Boulogne.  Part 
of  the  route  between  Cherbourg  and  Brest  i^/as  closed  due  to 
suspected  mines.   Torpedo  boats  T  "24"  and  T  "25"  put  into  Dun- 
kirk enroute  from  Hook  of  Holland  to  Boulogne.  During  the 
night,  4th  PR  Boat  Flotilla  took  a  cargo  of  mines  from  Peterport 
to  Cherbourg  and  returned c 

III.  North  Sea.  Norway,  Northern  Waters: 


-11-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

North  Sea: 

Escort  and  patrol  services  were  carried  out  according  to 
plan  in  the  area  of  Commanding  Admiral,  Defenses  North.  One 
Z-A-mine  was  cleared  north  of  Terschelling  and  another  north  of 
Vlieland.   The  steamer  B3R1JICIA,  which  had  been  beached,  has 
been  towed  to  Rotterdam,, 

Special  Items  : 

Commanding  Admiral,  Defenses  North,  has  submitted  detailed  sug- 
gestions for  his  area  in  regard  to  operation  "Gute  Hoffnung". 
In  order  to  avoid  the  submarines  being  detected  in  the  North 
Sea  by  daylight  reconnaissance,  the  passage  from  Borkum  to' the 
area  boundary  must  be  made  at  night  only  and,  if  necessary,  in 
two  or  three  stages.   In  order  to  pass  through  the  area  as  quick- 
ly as  possible,  delay  due  to  mine  escort  must  be  avoided.  Type 
35  minesweepers  with  a  cruising  speed  of  15  knots  will  therefore 
be  used  as  protection,,  For  security  reasons,  entrance  into  ports 
or  river  mouths  will  be  avoided.  Instead  of  laying  the  boats 
on  the  sea-bottom  in  the  harbors  during  daylight  as  suggested  by 
Naval  Staff,  Commanding  Admiral,  Defenses  North  advocates  their 
lying  on  the  bottom  in  the  open  sea  at  given  points  near  the 
route  which  would  have  to  be  constantly  checked  for  ground- 
mines.  This,  on  the  assumption  that  prevailing  current  con- 
ditions permit  the  submarines  to  lie  on  the' bottom.  Reinforce- 
ment of  protection,  in  PT  boat  danger  areas,  by   units  of  9th 
Motor  Minesweeper  Flotilla,  is  also  desirable. 

Norway,  Northern  Waters: 

1.    Enemy  Situation: 

Two  Russian  submarines  were  detected  off  the  Arctic 
coast  of  Norway,  Seventeen  planes  were  observed  operating  over 
the  North  Sea  and  3  planes  ±i  the  area  of  the  Iceland  Squadrons. 
According  to  photographic  recoonnaissancc,  1  destroyer,  1  torpedo 
boat,  10  submarines  and  1  steamer  were  at  Polarnoje  on  1  Jul. 
In  Motcrski  Bay  2  steamers  and  1  warship  were  observed  coming 
in  and  in  Motka  Bay,  1  PT  boat,  1  patrol  boat  and  3  coastal 
vessels  were  sighted,  all  stationary.  There  were  2  steamers  in 
the  western  entrance  of  Pulonga. 

2C    Own  Situation: 


Six  enemy  reconnaissance  planes  wore  over  the  Bardoe 
area  on  the  night  of  30  Jun.  and  on   1  Jul.  Another  reconnais- 
sance plane  was  reported  from  the  Kongs fjord  area.  In  the  fore- 
noon of  2  Jul.  a  Mosquito  flew  in  via  Aalesund.  At  noon,  a 


-12-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

Hudson  was  reported  to  be  approaching  a  southbound  convoy  near 
Stadlandet,  but  it  turned  off  when  a  patrol  boat  opened  fire. 

Twenty-nine  steamers  were  escorted  to  the  north  and  Z+l  to  the 
south, 

IV,  Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea : 

1.  Enemy  Situation: 

In  Kronstadt  Bay,  a  destroyer  on  firing  practice 
was  observed  in  the  forenoon.  From  1200  to  2000,  Peterhof  and 
the  coastal  sector  were  kept  under  constant  fire.  At  2000,  it 
was  observed  that  heavy  smoke  screens  were  being  put  up  at 
Kronstadt  and  Lisi  Nos,  The  usual  patrol  boat  traffic  near 
Lavensar  was  noted, 

2,  Own  Situation: 

No  reports  have  been  received  fron  the  ar^a  of  Com- 
manding Admiral,  Defenses  Baltic. 

On  1  Jul.,  a  Danish  fishing  cutter  struck  a  nine  near  Moen  but 
did  not  sink.  On  2  Jul,,  the  tug  STURM  sank  10  miles  northeast 
of  Swincmuende-  after  striking  a  nine.  A  fishing  vessel,  east  • 
of  Swinemuende,  reported  the  explosion  in  its  net  of  allegedly, 
4  mines. 

No  special  reports  have  come  in  from  the  area  of  Commander,  Mine- 
sweepers East,  Convoy  and  transport  traffic  throughout  the  Bal- 
tic area  were  carried  out  according  to  plan  end   without  incident, 

V,  Merchant  Shipping: 

A  survey  of  the  tonnage  capacity  of  big  German  ships  in 
the  Mediterranean  shows  that  50,000  BRT  are  operational  in  the 
Western' Mediterranean  and  51  shipa  for  about  112,000  BRT  in  the 
Central  and  Eastern  Mediterranean-   For  copy  of  the  survey  and 
explanatory  remarks,   dated  3  Jul.,   see  War  Diary,   Part  C, Vol. XI. 

VI,  Submarine  Warfare: 

lo  EnejiK  Situation: 

Nothing  to  report, 

2,    Own  Situation: 

Tanker  U  "462"  assigned  to  sup-ply  Group  "Monsun", 
was  again  forced  to  turn  back  having  been  hit  by  a  bomb  in  the 

Bay  of  Biscay, 

-13-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

val  Staff,  Submarine  Division,  has  submitted  operational 
orders  for  mine  missions  "Delaware",  "Port  Lyautey",  "Norfolk" 
(twice),  "Kingston",  "Jamaica",  "Jacksonville",  "Charleston", 
"Lagos",  "Rabat#  and  "Takoradi".  In  regard  bo  mine  operation 
"Delaware",  Naval  Staff,  Submarine  Division  was  advised  that, 
since  nines  were  last  laid  in  the  entrance  to  Delaware  Bay,  the 
port  of  Philadelphia  has  been  declared  open  for  neutral  Spanish, 
Portuguese  and  Swiss  shipping  sailing  in  European  interests,  and 
that  we  must  therefore  refrain  from  mining  those  waters.  Naval 
Staff,  Operations  Division  had  no   comment  on  the  other  orders, 

VII.  Atrial  Warfare: 

British  Isles  and  Vicinity: 

The  3rd  Air  Force  had  158  planes  in  operation  in  the  West 
area  and  5  planes  in  the  Mediterranean.  It  lias  so  far  been  im- 
possible to  re-detect  the  convoy  in  the  Pentland  Firth 0  During 
the  day,  several  locomotives  in  the  West  area  were  destroyed 
by  strafing  from  enemy  fighter-bombers.  Further  damage  tc  traf- 
fic installations  was  also  reported. 

Mediterranean  Theater: 

Operations  by  our  a±v   Force  were  restricted  to  intensified 
reconnaissance.  The  enemy  Air  Force  made  a  strong  attack  on 
Palermo  during  the  night  of  1  Jul.,  but  caused  no  damage.  Dur- 
ing the  day,  airfields  in  Sicily  and  southern  Italy  were  attacked. 
Major  damage  was  sustained  at  Groltaglie  and  Lecce,  minor  damage 
at  San  Pancrazio  and  no  damage  at  Castelvetrano,  For  details, 
sec  Daily  Situation.  Our  fighters  shot  down  12  Liberators  and 
9  other  types,  making  a  total  of  21  enemy  plane s0 

Eastern  Front: 

Nothing  to  report. 

VTII.'  Warfare  in  the  Mediterranean  and  Black  Sea : 

1.    Enemy  Situation: 

At  I63O,  a  ship  of  the  ILLU3TRICUS  class  accompanied 
by  5  destroyers  left  Gibraltar  for  the  east  and,  at  1730,  9  de- 
stroyers left  Gibraltar  for  the  Atlantic.  Our  air  reconnaissance 
reported  11  PT  boats  sailing  east  at  high' speed,  22  miles  west- 
northwest  of  Bizerta  at  1130  and,  at  1135,  1  battleship  and  4 
destroyers  17  miles  west-northwest  of  Bizerta,  also  sailing  east, 
at  medium  speed. 


-14-  COITIDEETIAL 


CONFIDENTIAL 
2  Jul.  1943 

2.    Own  Situation:  Mediterranean: 

The  7th  PT  boat  Flotilla  made  no  contact  with  the 
enemy  during  its  operations  in  the  night  of  1  Jul.  The  3  boats 
of  the  flotilla  put  into  Porto  Vesme  (Sardinia).  Mine  ships 
POMMERN  and  BRANDENBURG  have  arrived  at  I-laddalena. 

German  Naval  Command,  Italy  states  in  its  weekly  report  that 
the  protection  of  the  southwest  sector  has  been  strengthened 
by  the  BRANDENBURG/POMMERN  mine  operation  and  that  further  op- 
erations depend  on  the  shipment  of  mines.  Little  progress  has  been 
made  with  the  Sicily  barrage  since  the  12th  liotor  Minesweeper 
Flotilla  was  withdrawn.  The  report  describes  the  situation  as 
f ollows : 

"By  a  dislocation  of  landing  facilities  in  the  Bizerta  -  Tripoli  - 
Malta  area,  it  would  still  be  possible  for  4-5  Task  Forces  to 
attack  the  Italian  islands  in  the  new-moon  period*  The  presence 
of  a  cruiser  formation,  possibly  with  2  battleships  and  an  air- 
craft carrier,  in  the  La  Galite  area,  and  the  great  air  activity 
over  Sicilian  airfields,  indicate  imminent  enemy  operations* 
Stocks  on  the  islands  are  hardly  adequate.   If  an  enemy  landing 
makes  big  ship  traffic  impossible,  adequate  supplying  by  small 
vessels  cannot  be  guaranteed  in  view  of  the  shortage  of  naval 
ferry  barges  and  Siebel  ferries.  On  the  other  hand,  the  general 
effect  of  the  enemy  air  attack  is  not  as  strong  as  might  be 
expected  on  the  eve  of  a  large  scale  offensive.   Reinforcement 
of  our  own  Air  Force  has  alleviated  the  situation  to  a  certain 
extent.   The  morale  and  attitude  of  the  Italians,  have  improved. 
The  general  situation  is  serious  but  far  more  hopeful  than  at 
the  end  of  the  Tunisian  "campaign,'1 

In  order  to  improve  the  supply  traffic  to  Sicily,  landing  places 
are  being  enlarged,  and  five,  on  each  side  of  the  Straits  of 
Messina,  are  so  far  ready  for  service .  Harbor  installations  on 
Sardinia  and  Corsica  are  being  improved.   The  construction  of 
landing  places  depends  on  the  arrival  of  Todt  Organization 
personnel  and  of  material,,  Several  alternative  mooring  places 
are  available  for  naval  ferry  barges  and  Siebel  ferries.  Un- 
loading capacity  is  increasing  due  to  reinforcement  of  the  port 
companies.  For  copy,  of  the  Weekly  Report,  see  teletype  0115» 

3«    Sea  Transport  Situation: 

No  special  information  was  reported  on  2  Jul. 

The  German  Naval  Command,  Italy  reported  on  26  Jun. ,  as  already 
noted,  that  it  is  inadvisable  to  ship  German  supplies  on  Italian 


-15-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

ships  because  the  latter' s  turn-around  time  is  much  slower  than 
that  of  the  German  vessels  and  the  Germans  are  entitled'  to 
only  15$  of  the  total  cargo  space.   German  Naval  Command,  Italy 
had  calculated  that  for  the  three  islands,  the  German  Army  would 
require  a  total  of  41,650  tons  in  a  first  simple  supply  opera- 
tion and  monthly  supplies  of  32,700  tens  while  the  monthly  re- 
quirement for  the  Italian  Army  and  the  civilian  population  was 
estimated  at  260,000  tons, 

V7ith  reference  to  this  statement,  Chief,  Supply  and  Transport, 
Italy  reported  en  1  Jul.  to  Naval  Staff,  Quartermaster  Division, 
Shipping  and  Transport  Branch  that  no  transfer  of  ships  to  the 
Aegean,  by  either  the  Germans  or  the  Italians,  is  possible  at 
present  since  the  tonnage  on  hand  is  barely  sufficient  to  equip 
and  supply  the  three  islands.  In  this  correction  account  must 
be  taken  of  the  fact  that  a  comparatively  large  number  of  ships 
is  undergoing  leng-term  repair,  that  dockyard  capacity  has  been 
reduced  by  enemy  air  attack  and  that  the  turn-about  cf  Italian 
ships  can  be  speeded  up  only  if  all  the  vessels  are  combined 
and  out  under  the  leadership  or  control  cf  the  German  Navy.  As 
this  cannot  be  done  at  pr^^nt,  Naval  Staff,  Quartermaster  Pi- 
vision  Shipping,  and  Transport  .Branch  considers  it  impossible  to 
transfer  any  shipping  space  to  the  Aegean  at  present. 

.+.    Area  Naval  Group  South: 

Aegean: 

According  to  Italian  reports,  an  enemy  submarine  was 
sighted  near  Rhodes  at  0550.  Submarine  hunting  is  underway. 

After  completing  the  mine  operation  in  the  Dodecanese,  the 
BULGAPJA  and  the  escort  vessels  entered  Leros.  The  tank-trans- 
port from  Salonika  of  11  naval  ferry  barges  with  1  submarine 
chaser,  has  reached  Rhodes.  Other  transport  traffic  went  ac- 
cording to  plan. 

Commanding  Admiral,  Aegean  reports  that  Alimnia  Bay  has  been 
closed  by  an  anti-tcrpedo  barrage.   (See  teletype  1230).  F©r 
announcements- of  other  declared  mine  areas  and  shipping  lanes 
in  the  Aegean,  see  teletypes  0905  and  0810, 

Special  Items: 

In  regard  to  the  question  of  bases  in  the  Aegean,  Naval  Staff, 
Operations  Division  has  informed  Uaval  Staff.  Quartermaster 
Division,  Fleet  Branch  that  Salonika,  Suda,  Kalamata  and  Patras 


-16-  CONFIDENTIAL 


CONFIDENTIAL 
2  Jul.  1943 

have  been  designated  as  PT  boat  bases  with  torpedo  stocks  and 
torpedo  regulating  equipment,  and  Argostoli,  Prevesa  and  Navarino 
as  bases  with  fuel  dumps  only.  Construction  work  is  to  begin 
immediately  by  groups  or  one  after  the  other  according  to  cir- 
cumstances.  The  order  of  precedence  is  to'be  established  in 
cooperation  with  Group  South.  Naval  Staff,  Operations  Division 
again  emphasized  that  the  Aegean  bases  should  not  be  regarded 
as  secondary  to  those  in  the  Western  Mediterranean  but  as  of  equal 
importance.   The  selection  of  a  main  base,  with  stocks  of  spare 
parts  and  repair  shops,  which  would  have  to  be  equipped  for  the 
boats  of  7th  and  3rd  FT  Boat  Flotillas  is  left  to  Naval  Staff, 
Quartermaster  Division, 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

Operations  by  the  1st  PT  Boat  Flotilla  off  Myshakov  on 
the  night  of  1  Jul.  produced  no  results.  On  the  way  out,  South 
of  Anapa,  2  enemy  PT  boats  were  sighted  for  a  short  time,  but 
nc  contact  was  made.   Operations  by  4  boats  of  1st  PT  Boat  Flo- 
tilla on  reconnaissance  patrol  in  the  outer  Temriuk  Bay  like- 
wise produced  no  results.  At  0430,  2  boats  of  11th  PT  Boat 
Flotilla  were  unsuccessfully  attacked  by  3  enemy  bombers  while 
returning  from  the  patrol  line  east  of  Theodosia.  The  enemy 
was  driven  off  and  pursued  by  our  fighters.  One  of  the  3  air- 
craft was  shot  down,,  A  minesweeping  aircraft  cleared  one  mine 
north-northwest  of  Kerch, 

Attacks  by  small  enemy  air  forces  on  Yalta  and  Anapa  on  1  Jul. 
had  no  serious  effects. 

Supply  ferry  and  trans  'orb  traffic  were  carried  out  according 
to  planc 

In  addition  to  soldiers,  vehicles  and  guns,  a  total  of  97,36& 
tons  of  supplies  were  transported  to  the  Gotenkopf  position  dur- 
ing the  month  of  June.  Of  this  total,  65,027  tens  were  carried 
by  the  Navy. 

IX,   Situation  East  Asia:  , 

On  the  basis  of  information  from  the  Japanese  Naval  Staff, 


-17-  CONFIDENTIAL 


CONFIDENTIAL 

2  Jul.  1943 

Naval  Attache  Tokyo  reports: 

U.  S.  Troops  landed  on  the  island  of  Rendova  and  at  several  places 
on  the  south  coast  of  New  Georgia  early  on  30  Jun,  On  New- 
Georgia  the  enemy  was  repulsed  in  most  cases.  About  one  division 
landed  at  Rendova.  The  objective  of  the  landing  was  evidently 
the  capture  of  the  Japanese  intermediate  landing  field  at  Munda. 

Japanese  air  forces  attacked  the  transport  fleetc  Up  to  now, 
31  planes  have  been  shot  down  in  heavy  air  combat,,  As  the  fleet 
put  out,  2  light  cruisers  and  1  destroyer  were  sunk  and  1  de- 
stroyer damaged,  and  6  transports  were  sunk  or  damaged. 

The  fighting  continues,  Munda  is  occupied  by  strong  Japanese 
forces.  Reconnaissance  has  so  far  revealed  no  other  transport 
group »0 

Simultaneously,  approximately  one  regiment  of  Australian  troops 
were  put  ashore  by  landing  boats  south  of  Salamaua  and  are 
presently  engaged  in  battle  with  Japanese  troops. 

Allied  Headquarters  in  the  Southwest  Pacific  report  that  the 
areas  of  Tcbriant  and  Woodlak  have  been  occupied  without  en- 
countering enemy  resistance,  whereas  the  troops  landed  on  New 
Guinea  and  the  Rendova  islands  are  fighting  against  the  Jap- 
anese defense  lines.  The' entire  operation  is  under  the  command 
of  the  Commander  in  Chief,  General  MacArthur0 

According  to  information  issued  by  the  U.S«  Navy  Department,  65 
enemy  planes  were  destroyed  during  the  air  battles  at  Rendova 
for  a  loss  of  17  American  planes.  One  U.S.  transport  was  damaged 
by   a  Japanese  torpedo  plane  and  was  later  sunk  by  a  Japanese 
submarine  without  loss  of  life.  The  harbor  of  Viru  on  the  Island 
of  Wau  was  captured  by  combined  U.S.  forces  on  1  Jul„ 

3  Jul.  1943 

Items  of  Political  Importance: 

Transocean  reports  that  a  Finnish  -  American  Association  has  been 
founded  at  Helsinki. 

Reuter  reports  that,  in  a  statement  from  Cairo,  the  Prime  Minis- 
ter of  the  Polish  Government  in  Exile  demanded  that  East  Prussia 
and  Danzig  should  be  placed  under  Polish  control  after  the  war. 

According  to  American  press  reports,  there  are  indications  in 


-18- 


CONFIDENTIAL 
3  Jul.  1943 

Moscow  that  the  Soviet  government  is  dissatisfied  at  the  delay 
in  the  Western  Allies'  military  plans.  An  invasion  of  Europe 
could  be  regarded  as  successful  only  if  Germany  were  forced  to 
withdraw  at  least  60  divisions  from  the  Eastern  Front, 

According  to  Reuter,  the  French  political  scene  in  Algiers  is 
still  characterized  by  dissension  and  conflict.  How  far  this 
will  affect  military  operations  in  the  Mediterranean  remains 
to  be  seen. 

Conference  on  the  Situation  with  Chief,  Naval  Staff : 

I.  Army  Situation: 

The  unusually  large  number  of  troop  transports  at  Port 
Said  claims  increased  attention  in  the  Eastern  Mediterranean, 
Of  the  total  transport  tonnage  of  619,000  3RT  detected  in  the 
entire  Mediterranean,  365,000  BRT  are  in  Egyptian  ports,  106, 
000  BRT  in  Gibraltar  and  the  rest  in  the  Oran/Algiers  area. 
Of  the  total  amount  of  about  2,400,000  BRT  of  shipping  in  the 
Mediterranean,  748,000  BRT  are  in  Egypt, 

II.  According  to  information  from  the  Admiral  attached  to 
Fuehrer  Headquarters,  the  Fuehrer  has  expressed  dissatisfac- 
tion with  the  alleged  inactivity  of  our  naval  forces  in  the 
Black  Sea.   The  Admiral  attached  to  Fuehrer  Headquarters  will 
be  brought  up  to  date  on  the  actual  results  achieved  by  our  few 
light  forces  and  submarines,, 

III.  Report  by  Chief,  Naval  Staff,  Quartermaster  Division: 

a.  Air  Commander,  Atlantic  Coast  has  asked  for  sea-borne 
anti-aircraft  protection  for  the  flying  boats  on  the  Atlantic 
coast.   Group  West  has  been  ordered  to  investigate  the  matter, 

b.  There  are  at  present  about  18  towed  cylinder  gears 
(Tr,N0  Hohstabgeraet  is  unknown,  probably  mistaken  for  Hohlsta- 
bgeraet)  in  the  West  area.   Group  West  is  receiving  2  gears  per 
month  out  of  a  monthly  total  supply  of  6  for  the  entire  area, 

Co    All  the  Navy's  available  net  material  has  now  been 
dispatched  for  the  protection  of  the  river  dams  in  Germany. 
Chief,  Naval  Staff  has  approved  the  termination  of  this  task, 

d0    Report  on  the  status  of  the  barge  program  and  on 
the  dispatch  of  naval  landing  craft  and  of  the  12th  and  11th 
Minesweeper  Flotillas  to  the  Mediterranean,  according  to  report 
of  Group  West,  For  copy  as  per  l/Skl  18938/43  Gkdos,,  see  tele- 
type 1545 . 


-19- 


CONFIDENTIAL 
3  Jul.  1943 

e.  It  is  possible  for  the  Kavy  to  supply  4  cm.  shells 
to  the  Spaniards  as  replacement  for  the  ammunition  destroyed  at 
Ferrol  in  case  such  action  is  requested, 

f.  The  only  batteries  capable  of  taking  action  against 
enemy  convoy  traffic  in  the  Channel  are  the  "Todt"  and  "Lindemann" 
batteries  which  are  equipped  with  liners 0  (?)  However ,   the  allot- 
ment of  ammunition  is  insufficient.  The  guns  of  the  "Friedrich 
August"  battery  cannot  be  interchanged;  those  of  the  "Grosser 
Kurfucrst"  battery  can  be  replaced  by  available  naval  guns.  How- 
ever, the  question  of  whether  those  28  centimeter  guns  have  suf- 
ficient range  must  be  investigated,, 

IV. Report  by  Chief,  Bureau  of  Naval  Armament.  Naval  Ordnance 

Division,  Artillery  Branch:  The  demands  for  the  equipment  of  front-       f 
line  submarines  with  twin  mounts  will  be  fulfilled  according  to 
schedule.  The  first  40  units  will  be  ready  for  installation  on 
15  July.  Full  acknowledgement  is  due  to  the  firms  engaged  on 
this  work.   Sixty-nine  twin  mounts  will  be  ready  in  Aug.,  200 
in  Sept.,  and  1,100  by  the  end  of  the  year.  It  is  calculated 
that  a  total  of  500  submarines  will  be  equipped  with  20  twin  » 
mounts  each.  The  equipment  of  other  naval  forces  must  be  post- 
poned for  a  time0 

■ 
The  production  of  automatic  mechanisms  will  be  increased  from 

840  to  1,440  units  by  Sept* 

The  Admiral  attached  to  Fuehrer  Headquarters  has  so  far  been 
unsuccessful  in  the  matter  of  the  2  cm.  ammunition.  The  demand 
for  1.5  million  rounds  for  Jul.  is  very  moderate.  When  the 
twin  mounts  are  in  use,  the  demand  for  submarines  alone  will 
increase  by  Nov.  to  19  million  rounds. 

Ve    Chief,  Naval  Staff,  Operations  Division  reports  that  the 
material  worth  salvaging  from  submarine  U  "167"  comprises  1 
torpedo  with  Pi  2  and  1  radar  location  set,  and  proposes  to 
accept  the  Spanish  offer  of  divers  to  work  under  German  super- 
vision. 

Chief,  Naval  Staff  concurred. 

In  a  highly  restricted  circle: 

VI.   Report  by  Chief,  Naval  Staff,  Operations  Division.  Opera- 
tions Branch: 

a.    Group  North  Fleet  asked  for  allotment  and  preparation 
of  mines  for  the  barrage  operation  planned  for  the  end  of  Sept. 

-20- 


CONFIDENTIAL 
3  Jul.  1943 

beginning  of  October  with  a  view  to  reinforcement'  of  the  Uest- 
wall  (Barrage  25  in  continuation  of  barrages  IB  a,  20  a  and  22 
b  which  have  already  have  been  laid).  Barrage  25  had  already- 
been  in  the  winter  but  was  postponed  in  view  of  the  fuel  situa- 
tion at  that  time.   It  was  suggested  that  a  provisional  allot- 
ment be  made  as  requested  but  that  the  decision  as  to  execution 
of  the  mission  be  conditioned  on  the  development  of  the  situa- 
tion and  the  position  in  regard  to  fuel  and  forces,  and  be 
postponed  until  Sept, 

Chief,  Naval  Staff  concurred.  The  relative  directives  have  been 
issued  by  order  l/Skl  I  E  18248/43  Gkdosc 

b.    With  reference  to  the  intended  submarine  operations 
on  the  northern  sea  route,  Naval  Staff,  Naval  Intelligence  Divi- 
sion has  ascertained  that,  west  of  the  Wilkitzki  Narrows,  there 
are  unlikely  to  be  any  attack  targets  such  as  to  offer  prospects 
of  results  capable  of  affecting  the  overall  situation  of  the 
U.S.S.R,  to' any  notable  extent.   There  are  about  60  -  70  ships 
of  about  100,000  tens  capacity,,  On  the  other  hand,  an  attack 
on  the  escorting  ice  breakers  would  be  definitely  worthwhile  and 
would  affect  the  entire  Arctic  Sea  traffic.  The  presence  of  the 
big  ice  breakers  in  the  Kara  Sea  up  to  the  middle  of  August  or 
the  beginning  of  September  can  be  counted  on. 

Major  traffic  centers  are  off  the  mouths  of  the  0b  and  the  Yenissei, 
off  the  Novaya  Zemlya  Straits  and  -  up  to  mid-August  -  in  the 
Maltisen  Strait,  Valuable  targets  are  offered  further  west  by 
the  fuel  tanks  and  shipping  at  the  Belushya  Bay  base  on  Novaya 
Zemlya, 

The  Commanding  Admiral,  Task  Force  suggested  that  submarine  . 
attacks  be  held  off  until  the  LUETZ0W  starts  her  operations 
which  it  is  hoped  will  achieve  surprise. 

Naval  Staff  considered  any  restriction  of  attack  to  be  in- 
advisable c     Chief,  Naval  Staff  concurred  in  this  opinion* 

Group  North  raised  the  question  of  the  participation  of  de- 
stroyers in  possible  operations  by  LUETZ0Wo  Naval  Staff  objec- 
ted, in  view  of  the  ice  danger  for  the  light  vessels  and  of 
the  supply  difficulties  entailed,  especially  since,  in  Naval 
Staff's  opinion,  the  operation  will  be  succes  ful  only  if  it  is 
of  some  duration,,  Chief,  Naval  Staff  agreed  with  this  view  and 
also  approved  the  plan  to  place  the  submarines  involved  under 
the  authority  of  the  LUETZOW's  commander. 


-21-  CONFIDENTIAL 


CONFIDENTIAL 
3  Jul.  1943 

Meanwhile  three  Submarines  have  been  made  available  for  the 
additional  mine  operations  planned  east  and  west  of  Novaya 
Zemlya.   It  remains  to  decide  whether  the  other  2  boats  will 
be  allotted  in  complete  fulfilment  of  the  request  of  Group  North 
Fleet, 

Chief,  Naval  Staff  feels  that  this  decision  depends  on  the  pro- 
gress of  the  conning  tower  conversion' work.  If,  without  attect- 
ing  the  front-line  boats,  in  the  West,  so  many  towers  are  pro- 
duced in  Germany,  that  it  becomes  impossible  to  convert  all  the 
boats  at  the  same  time,  the  Group's  suggestion  can  probably  be 
complied  withc 

Co    Commander  in  Chief,  Air  Force,  Operations  Staff  has 
approved  the  suggestion  concerning  the  use  of  1,500  of  the  new 
mine-firing  devices  per  month  as  from  Sept,  Approval  of  Armed 
Forces,  High  Command,  Operations  Staff  must  now  be  obtained© 

Chief,  Naval  Staff  concurs* 

Special  Items: 

I.    Report  by  Chief,  Bureau  of  iiaval  Armament  Division,  Naval 
Ordnance  Division,  Underwater  Obstacles  Branch  to  Chief,  Naval 
Staff  on  the  present  position  in  regard  to  mines  and  mine  de- 
fens  e0 

Chief,  Naval  Staff  was  briefly  informed  on  the  development  of 
the  new  firing  devices  and  on  further  planse 

Lengthy  discussions  were  held  on  measures  to  increase  the  offen- 
sive and  defensive  efficiency  of  the  mine  weapons^ 

With  reference  to  the  suggestion  of  the  Chief,  Bureau  of  Naval 
Armament,  Naval  Ordnance  Division,  Underwater  Obstacles  Branch 
that  the  performance  of  the  overworked  Mining  and  Barrage  Ex- 
perimental Command  could  be  effectively  increased  by  the  addi- 
tion of  a  few  (about  25)  capable  engineers  and  constructors, 
Chief,  Naval  Staff  decided  that  this  demand  should  be  cpmbined 
with  the  torpedo  program  in  order  to  avoid  a  separate  request 
to  Armed  Forces,  High  Command  which  would  bake  considerably 
longer. 

The  need  for  increasing  the  iron  quota  for  mines,  which  has 
been  too  low  in  recent  months,  was  recognized  and  is  to  be  con- 
sidered by  Bureau  of  Naval  Armament;  the  labor  problem  is  equal- 
ly important. 


-22-  CONPIDMXftX. 


CONFIDENTIAL 
3  Jul.  1943 

Chief,  Naval  Staff  is  inquiring  as  to  whether  iron  require-  ' 
ments  for  mines  could  not  be  reduced  by  using  other  materials, 
Chief,  Bureau  of  Naval  Armament,  Naval  Ordnance  Division,  Under- 
water Obstacles  Branch  reported  that  great  progress  has  been 
made  but  that  there  are  also  certain  limitations  because  the 
materials  are  not  sufficiently  resistant  to  sea  water. 

The  establishment  of  the  Mining  and  Barrage  Trial  Command,  al- 
ready approved  in  principle  last  year,  has  not  yet  been  effected. 
As  the  Command  is  urgently  needed  for  testing  new  devices^,  Chief, 
Naval  Staff  ordered  a  thorough  examination  of  the  quest ion„ 

Chief,  Naval  Staff  considers  that  the  defects  in  the  present 
organization  of  the  front-line  formations,  which  lack  central 
leadership,  must  be  eliminated.  This  is  necessary  if  only  be- 
cause, at  present,  each  defense  force  commander  issues  separate 
war  experience  instructions  and' separate  tactical  orders  of 
his  own  and  therefore,  training,  tactical  ideas  and  methods  are 
divergent.   (In  newly  established  areas  instructions  on  the 
latest-  experiences  are  completely  lacking  much  to  the  disadvant- 
age of,  for  instance,  Naval  Command,  Italy.) 

Chief,  Naval  Staff  believes  that  such  a  central  authority  should  ■ 
be  in  close  contact  with  the  front  lino  and  should  not,  therefore, 
be  set  up  at  Berlin.  Underwater  Obstacles  Branch,  Naval  Staff, 
Operations  Division  and  Naval  Staff  Quartermaster  Division  arc 
to  cooperate  in  following  up  the  matter. 

In  the  course  of  the  report,  Chief,  Naval  Staff  repeatedly 
stressed  that  mines  can  make  a  big  contribution  to  the  war  on 
shipping  which  is  especially  important  particularly  in  view  of 
the  present  status  of  the  submarine  campaign.  The  efficiency 
of  this  weapon  should  therefore  be  maintained  and  increased. 

II.   Order  l/Skl  I  op  18747/43  Gkdos.  deals  with  the  distribu- 
tion of  the  11th  and  12th  Minesweeper  Flotillas  to  be  newly 
established.  For  copy,  see  War  Diary,  Part  C,  Vol.  d. 

Situation  on  3  Jul.  1943 

Ig War  in  Foreign  Waters: 

10    Enemy  Situation: 

The  Intelligence  Service  reports  that,  according  to 
information  from  diplomatic  sources  in  the  USA  a  convoy  of  210 
ships  in  three  groups  under  US  escort  left  Bath  (Maine)  on  20 
and  22  June0  The  convoy  is  carrying  troops  allegedly  intended 
for  an  attack  on  Scandinavia. 

-23-  CONFIDENTIAL 


CONFIDENTIAL 
3  Jul.  1943 

Six  landing  operations  are  said  to  be  planned  for  the  second 
half  of  Jul.   or  the   first  half  of  Aug6,   in  Greece,   Denmark 
and  Norwaj'-  concentrating  especially  on  Greece  and  Norway. 

Another  report  states  that  a  convoy  carrying  about  18,300 
men  left  Onslow  Bay  on  21  Jun.   probably  destined  for  Egypt  - 
Syria  via  the  Indian  Ocean,     Also  during  June,   a  further  13,000 
men  were   to  be  assembled  at  Newport  and  Onslow  Ray  and  sent   to 
England  for  an  attack  on  Norway „ 

Naval  Staff,    Naval  Intelligence  Division  gave  a  summary  report 
on  the   enemy  situation  in  the  South  Atlantic  as-  at  1  Jun.   1943c 
For  copy  of  l/Skl  17783/43  Gkdos.   see  War  Diary,   Part  C,   Vol.   I. 

2.  Own  Situation: 

Naval  Attache  Tokyo  reports: 

1.  The  SCHLIEMANN  is  not  in  danger. 

2.  For  the  I-IECHEL's  voyage  to  the  Pacific,    only 
short  operations  in  the  Indian  Ocean  have  been  agreed  upon  with 
the   Japanese  Navy.     If  this  is  not   sufficient  n^w  arrangements 
will  be  necessary  <> 

3.  Information  on   the  position  of  Japanese  sub- 
marines has  been  promised.      Naval  Attache  Tokyo  also  reports: 

The  Captains  of  the  blockade-runners  have  unanimously  requested 
that  the  top-masts  be  retained  because: 

1,  Early  identification  of  the   enemy  ship,    from 

the  topm: st,    gives  the  advantage  to  the  blockade-runner  and  makes 
it  possible  to  take  evasive  measures  before   recognition  by  the 
enemy,,   If  the  top-masts  are  removed  the  effectiveness  of  the 
lookout,  which  is  the  blockade-runner's  best  weapon,   will  be 
eliminated  or  greatly  reduced.     Up  to  now,   all  blockade-runners 
have  sighted  the  enemy  first  thanks  to  the   look-out  en  the  top- 
st. 

2e  In  areas  where  an  air  threat  exists,    enemy 

aircraft  will  still  be  able  to  identify  the  ships'    nationality 
from  its   silhouette,    in  spite  of  removal  of  the   top-masts „ 

3.  Enemy  vessels  that  sight  our  blockade-runners 

and  wish  to  establish  their  nationality  will  persist  in  their 
intention  whether  the  top-masts  are  there  or  not. 


-24-  CONFIDENTIAL 


CONFIDENTIAL 
3  Jul.  1943 

4<»    Construction  of  telescopic  top-masts  would 
make  it  impossible  for  it  least  the  first  three  blockade- 
runners  to  sail  on  schedule. 

These  objections  are  extremely  forceful  and  make  it  necessary 
to  review  the  matter. 

Naval  Staff  has  advised  Naval  Attache  Tokyo  that  AQUILA  3  has 
reported  that  she  will  not  arrive  at  the  rendezvous  point  be- 
fore 9  Jul. 

Detailed  information  on  enemy  ship  movements  will  be  forwarded 
to  all  vessels  in  foreign  waters  by  radiogram  2014« 

II.        Situation  'Jest  Area: 

1,  Enemy  Situation: 

Thirty-seven  planes  were  in  operation  in  the  Bay  of 
Biscayc  One  British  ship  was  located  in  BF  2615  at  1207,,  one 
in  BE '3693  at  1556  and  one  in  AL  51 60  shortly  after  midni-ht  of 
3  Jul. 

2.  Own  Situation: 

Atlantic  Coast: 

One  ELM/J  mine  was  cleared  in  Quiberon  Bay.   The 
escort  service  brought  in  10  submarines. 

It  is  estimated  that  submarine  U"462",  which  was  damaged  by  an 
air  attack  will  be  in  BF  8496  at  0700  on  5  Jul,  Group  West 
plans  to  use  two  torpedo  boats  or  else  two  destroyers  to  bring 
her  in  when  the  weather  is  favorable  Close  protection  by  JU 
88  planes  from  0715  on  5  Jul.  onwards  and  reconnaissance  west 
of  the  rendezvous  point  have  been  requested*  Escorting  submarine 
U  "160"  will  return  to  her  position  after  submarine  U  "462"  has 
been  picked  up  by  the  escort  ships,   (See  teletype  1853), 

Group  West  has  forwarded  to  Naval  Staff,  for  information,  the 
order  issued  to  the  destroyer  and  torpedo  boat  flotillas  attached 
to  that  Command,  as  follows: 

"The  following  distribution  of  destroyers  and  torpedo  boats  in 
the  West  area  is  planned  for  the  immediate  future  during  which 
their  main  function  will  be  assistance  to  submarines: 


-25-  CONFIDENTIAL 


CONFIDENTIAL 

3  Jul.  1943  , 

Erost:      4th  Torpedc  boat  Flotilla  -  four  boats,  in- 
cluding 2  from  5th  Torpedo  Boat  Flotilla,  under  the  command 
of  S.O.  4th  Torpedo  Boat  Flotilla. 

La  Pallice:  5th  Torpedo  Boat  Flotilla  -  3  boats  and 
torpedo  boat  T  "19",  under  the  command  of  S.O.  5th  Torpedo 
Boat  Flotilla.  Mien  the  MOSWE's  cruising  overhaul  begins, 
torpedo  boat  T  "14"  will  join  the  Pallice  group. 

Gironde:    8th  Destroyer  Flotilla. 

Bayonne  will  be  the  alternative  port  for  occasional  berthing  of 
2  boats  cf  the  La  Pallice  group,  and  Nantes  and  Donges  will  be 
the  alternative  ports  for  the  Brest  Group." 

There  arc  no  objections  on  the  part  of  Naval  Staff. 

Channel  Coast: 

Escort  and  defense  services  were  carried  out  ac- 
cording to  plan.  One  AT-mine  ras  cleared  north  of  Calais. 
4th  Motor  Minesweeper  Flotilla  carried  out  a  special  mission 
northeast  of  Cherbourg. 

With  reference  to  the  inquiry  of  Comranding  Admiral,  Submarines" 
in  regard  to  moving  the  ex-channel  ferry  ship  LCTHRINGEN  (Tr.N. 
Kanalfuehrshiff  ehould  read  Kanalfaehrschiff )  from  Le  Havre  to 
Wilhelmshaven,  Group  West  reports: 

"As  it  has  been  ascertained  that  the  LOTHRI..GEN  cannot  be  ready 
to  sail  before  the  second  half  of  Jul.,  it  is  planned,  in  view 
of  the  urgency,  to  bring  her  home  from  Le  Havre  at  the  end  of 
Jul.,  regardless  of  the  short  nights  in  the  new  moon  period, 
under  escort  of  torpedo  boats  of  the  Brest  Group  as  far  as  the 
area  boundaries.  Commanding  Admiral,  Defenses  West  will  be  in 
charge  of  preparations  and  will  report  his  plans  to  the  Group," 
(See  teletype  1050  and  1632). 

III.  North  Sea.  Norway,  Northern  Waters : 

North  Sea: 

In  the  area  of  Commanding  Admiral,    Defenses  North,   during 
Jun.,   43   ELK/J-mines,   19  ELM/A-mines,   3  ELM/JA-mines,   38  ELM/- 
mines,   total  103  mines,  wore  cleared.     In  the  same  period,   there 
was   a  total  of  25  air  raids  including  4  large-scale  attacks  on 
convoys.     Forty-one  enemy  aircraft  were  shot  down   (this  was  a 


-26-  CONFIDENTIAL 


COIJFIDENTIAL 
3  Jul.  1943 

record  for  the  formations  of  Commanding  Admiral,  Defenses  North). 
Our  own  losses  were:  patrol  boat  VF  "1109",  by  bomb  and  aerial 
torpedo ;    steamer  3TADT  MDEN  (5,180  BRT)  by  aerial  torpedo,  Gor- 
man steamer  NARVIK  (5,822  BRT)  by  ELM-mine,  one  Danish  fishing 
cutter  b3>-  mine  and  another  Danish  fishing  cutter  by  a  drifting  ■ 
mine.  Casualties:  Navy,  4&  killed,  15  missing,  49  seriously 
and  31  slightly  wounded.  Merchant  navy:  3  misaing,  2  seriously 
wounded. 

Altogether,  in  Jun.,  349  ships  totalling  709,248  BRT  were  es- 
corted of  which  57  ships,  of  100,607,  3RT  were  in  the  Holland 
convoys.  In  addition  15  short-distance  warship-escort  missions 
were  performed,  9  of  them  with  submarines,  as  well  as  49  short- 
distance  escort  missions  with  supply  ships. 

Escort  and  patrol  services  were  carried  out  on  3  Jul.  according 
to  plan  and  without  incident. 

On  29  Jun.,  Commanding  Admiral  Defenses  North  suggested  altera- 
tions in  the  priority  list  for  further  barrage  projects  for  the 
reinforcement  of  the  Westwall  as  reported  on  10  Jun.,  requesting 
approval  and  allotment  of  mines.  Naval  Command  North  approved 
the  suggestion.  '  The  suggestion  is  contained  as  per  l/Skl  1387/ 
43  Gkdos.  Chefs.,  in  files  of  Naval  Staff,  Operations  Division. 

In  this  regard,  Naval  Staff  has  decided  as  follows: 

1.  The  necessity  of  reinforceing  the  SW-Wall  is 
in  general,  acknowledged, 

2.  In  regard  to  the  details  of  the  plan: 

a.  The  use  of  snag  linos  south  of  the  Black 
Bank  is  rejected  in  view  of  our  ovm  PT  boat  operations.  Com- 
mander, PT  Boats  will  bo  consulted  as  to  the  possibility  of 
using  thorn  in  Barrage  4  C. 

b.  It  is  impossible  to  provide  the  number 
of  mines  required  by  the  end  of  July  or  by  the  end   of  August  be- 
cause of  the  more  urgent  requircmonts  in  the  Mediterranean  and- 
Northern  Norway.  Not  more  than  a  monthly  allotment  of  at  most, 
400  mines  can  be  counted  on. 

c.  It  is  not  planned  to  use  mineships  for 
Barrage  4  C  because  of  the  strong  PT  boat  throat.  Besides,  the 
BRUMMSR  is  duo  to  go  into  dock  and  the  05TA.AIK  is  in  Norway. 

d.  Mine  laying  beyond  the  present  barrage 
would  appear  possible  if  more  minesweepers  with  UMB  mines  are 


-27-  CONFIDENTIAL 


CONFIDENTIAL 
3  Jul.  1943 

used  as  in  the  previously  laid  anti-submarine  barrages  A/K,  SW 
204  -  209,  cind  the  barrage  is  subdivided  into  several  small 
sections. 

3.    For  the  Southern  sectors,  Naval  Staff  considers 
a  slight  reinforcement  of  the  present  barrage  sjrstem,  as  in  2  d, 
to  be  adequate  and  thinks  that  SW  14,  15  and  16  can  be  postponed. 
The  northern  sector  can  also  be  postponed  but  if  Group  West  and 
Commander  PT  Boats  can  arrange  for  their  FT  boats  not  to  use 
the  route  northeast  of  the  Black  Bank,  the  early  laying  of  Bar- 
rage 4  C  with  snag  lines  for  protection  against  enemy  PT  boats 
is  desirable. 

4«    Barrage  plans  will  be  reviewed  accordingly 
and  new  suggestions  submitted. 

At  the  same  time,  Group  West  was  asked  for  its  opinion  on  the 
planned  anti-submarine  barrage  B  with  snag  lines  for  the  pro- 
tection of  the  Netherland  convoy  route  against  enemy  PT  boats 
between  about  AN  $225  center  and  6886  lower  right.  It  was  added 
that,  in  the  opinion  of  Naval  Staff,  it  appears  reasonable  to 
suspend  our  PT  boat  operations  in  the  area  northeast  of  Black 
Bank. 

Norway,  Northern  Waters: 

10    Enemy  Situation: 

Twelve  planes  operating  in  the  North  Sea  were  de- 
tected by  Radio  Intelligence. 

Our  air.  reconnaissance  first  reported  2  heavy  cruisers  on  course 
240°  in  2218  AE  at  1520.  One  of  which  was ' described,  on  the 
plane's  return,  as  being  of  the  DIDO  class.  At  1740,  a  heavy 
cruiser  of  the  L0ID0N  class  was  reported  in  1739  AE  on  course 
90°  at  high  speed  and,  at  1810,  6  merchantmen  of  up  to  3,000  BRT 
with  2  guard  ships  were  sighted  and  reported  on  course  90°  in 
1948  AE0  Admiral,  Northern  Waters,  reports  that  the  enemy's  in- 
tentions are  not  yet  evident  from  the  reports  received.  Group 
North  Fleet  considers  it  possible  that,  in  both  cases,  the  types 
of  ships  may  have  been  mistaken  and  suggested  that  the  merchant- 
men may  have  been  fishing  vessels.  The  results  of  a  newly  ordered 
reconnaissance  by  two  FW  200  pianos  must  be  awaited* 

According  to  an  intelligence  report  received  frcm  London  via  Spain, 
a  big  convoy  with  war  material  for  Russia  has  been  in  prepara- 
tion in  the  noH.h  of  England,  chiefly  at  Licapa  Flew,  since  4  Jun., 


-28-  oC?!FIDEST1AL 


£ 


£ 


CONFIDENTIAL 
3  Jul.  1943 

and  will  set  out  for  the  northern  route  after  being  joined  by 
a  section  of  the  convoy  expected  from  Iceland. 

.  As  there  have  been  no  report  on  PQ  convoys  for  some  time 
the  above  report  may  be  intended  to  tie  down  or  alarm  our 
forces  in  the  northern  area  or  to  divert  attention  from 
other  operations,, 

2.    Own  Situation; 

At  noon  on  2  Jul.,  Russian  batteries  on  the  Ribocchi 
Peninsula  fired  115  rounds  on  the  harbor  area  at  Petsamo.  Fire 
was  returned.  Damage "rwas  done  to  buildings,  barracks  and  tele- 
phone lines. 

Destroyers  Z  "27"  and  "30"  entered  Kafjord  and  Langfjord  re- 
spectively early  on  2  Jul. 

The  escort  service  conducted  22  ships  to  the  north  and  34  ships 
to  the  south. 

Naval  Command,  Norway  reports  that  the  battle  group  has  decided 
not  to  use  either  of  the  net  enclosures  in  Bogen  Bay.  (See  tele- 
type 1245.) 

Air  Force  Operations  Staff  has  asked  to  be  advised  if  and  when 
the  Navy  intends  to  establish  new  weather  stations  in  the  Arctic 
Sea  area  as,  since  the  withdrawal  of  "Nussbaum",  the  5th  Air 
Force  has  been  having  difficulties  in  regard  to  weather  fore- 
casting (See  teletype  1045)* 

IVo   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea : 

1.    Enemy  Situation: 

In  Kronstadt  Bay,  14  guard  boats  coming  from  the 
west  and  one  gun  boat  entered  Kronstadt.  Vane sweeping  activi- 
ties were  observed  in  the  western  Kronstadt  roads. 

According  to  a  Finnish  report,  there  were  2  submarines  making 
for  Lavensari  in  A0  3713  at  0540. 

2#    Own  Situation: 

There  is  nothing  special  to  report  from  the  area  of 
Commanding  Admiral  Defenses  Baltic.   The  escort  service  through- 
out the  Baltic  Sea  area  was  carried  out  according  to  plan  and 

without  incident.   No  special  events  were  reported  in  the  area 
of  Commander,  Minesweepers  Baltic. 

-29-  CONFIDENTIAL 


CONFIDENTIAL 
3  Jul.  1943 

Gunfire  was  exchanged  in  the  Woronka  sector  and  strong  enemy 
artillery  and  trench  mortar  fire  was  reported.  One  of  our 
assault  detachments  blew  up  a  strong  Russian  combat  pillbox 
and  wiped  out  the  crew.  One  of  our  anti-tank  guns  and  two  anti- 
aircraft guns  went  out  of  action  due  to  burst  barrels,* 

Special  Items: 

1.  '  Naval  Command,  East  has  advised  Naval  Staff,  for  informa- 
tion, that  5th  Air  Force  has  been  requested  to  resume  fairly 
regular  reconnaissance  to  the  west,  in  order  to  keep  enemy  move- 
ments towards  the  Jutland  coast  or  enemy  raids  in  the  Skager- 
rak  under  observation0  Naval  Command  East  urgently  requested 
resumption  of  adequate  morning  and  evening  reconnaissance  of 
the  areas  'Jest,  South  and  Northwest  of  the  Skagerrak  to  the 
vicinity  of  the  English  coast  (See  Teletype  1302) • 

2.  In  regard  to  the  opinion  of  Commander  in  Chief,  Air  Force, 
Operations  Staff  on  the  cancelation  of  the -plan  to  mine  Kronstadt 
Bay  (sec  War  Diary  17  Jun.),  Naval  Command,  East  reports  that  it 
is  just  as  important  for  operation  "Froschlaich"  to  strike  at 
the  enemy  supply  traffic  to  the  Russian  islands-  and  to  keep  the 
enemy  minesweeping  formations  busy  in  this  area,  as  to  prevent 
enemy  forces  from  breaking  out  into  the  Baltic  Sea.  As  the  Navy 
has  not  the  means  for  more  active  operations  in  that  area,  Naval 
Command  East  requests  that  Commander  in  Chief,  Air  Force,  Opera- 
tions Staff,  again  be  asked  to  order  the  use  of  aerial  mines  and 
intensified  air  attacks  on  the  Russian  Islands. 

V.    Submarine  Warfare: 

10    Enemy  Situation: 

Nothing  to  report,, 

2#    Own  Situation: 

On  the  east  coast  of  America,  submarine  U  "66"  sank 
a  tanker  of  about  7,000  BRT  in  DB  62D  Submarine  U  "199"  observed 
great  air  activity  out  to  sea  off  Rio.   The  boat  shot  down  an 
aircraft  and  torpedoed  a  Liberty  ship  on  27  Jun. 

In  regard  to  the  bringing-in  of  the  damaged  submarine  U  "462", 
see  Situation  in  West  Area0 

Special  Items: 

Naval  Staff,  Quartermaster  Division,  Submarine  Section  has  com- 
piled a  list  of  submarines,  as • of  1  Jul.  1943  as  follows:  (last 
month's  figures  in  parenthesis): 

•'  -30-  CONFIDENTIAL 


CONFIDENTIAL 


3  Jul.  1943 

Front-line  boats: 

Under  submarine  acceptance  control  command 

Engaged  in  front-line  training  and  pre- 
paring for  fornt-linc  operations: 

Training  and  experimental  boats 

Estimated  number  of  new  boats  to  be  put 
into   service  in  July 

Put   into  service  in  June 

Join  front-line  boats  in  June 

Mis sir g  in  June 

Put  out  of  service  in  June 

Total  number  of  boats  in  service 

Percentage  of  losses: 


207 

(219) 

25 

i  23) 

126 

:n5) 

66   1 

:  63) 

21   1 

:  25) 

25   ( 

:  26) 

11   1 

:  16) 

22   ( 

'  38) 

8   ( 

:  9) 

424   ( 

420) 

of  the  total  number  of  front-line  boats 

to  end  of  June  10,63$     (17.4$) 


b.         average  since  beginning  of  war 
c#         average  since  January  1943 


5o45&     (  5.34$) 
8.32$     (  7.84$) 


(Tr.N. :     the  following  passage  is  in  handwriting:     Chief  of  Staff' 
of  Naval  Staff  -  According  to  information  from  Chief,    Naval  Staff, 
losses  in  the  month  of  June  amounted  to  17*5$  of  all  front-line 
submarines  at  sea  during  this  month,,) 

VI.       Aerial  Warfare : 

British  Islea  and  Vicinity: 

The  3rd  Air   Force  had  139  planes   in  operation  in  the  West 
Area  and  5  planes  in  the  Mediterranean.      Three   enemy  planes  were 
destroyed  during  the   day.      Enemy  planes  made  a  number  of  strafing 
attacks  on  traffic  installations  and  airfields.     No  special  dam- 
age was  reported.      During  the   night  another  large-scale  attack 
was  made  on  the  Rhine/Westphalia,   the  industrial  area  concentrat- 
ing on  Cologne.     Thirty-seven  of  about   500  reported  planes  were 
brought  down  by  anti-aircraft  fire  and  ni^ht  fighters*      For  de- 
tails,   see  Daily  Events 0 


-31- 


CONFIDENTIAL 


cc:  ai 

3  Jul.  1943  ~~ 

'  - .  .  ~  a  e rr  a  r.c  an  Th e  a t  er : 

Our  Air  Force  continued  reconnaissance  flights.      :'.c  special 
suits  were   obtained.     On  the  night   of  2  Jul.,    the  enemy  carried 
rt  harassing  raids   en  Trapara.  without  causing  damage.     During 
fcte    ""•:•".    cany  airfields  in  Sicily  and  Sardinia  were  attacked. 
Six  of  our  planes  were   destroyed  and  17  damaged.     Twenty-one 

-  planes  were    shot   down  by  anti-aircraft  fire  and  fighters. 
For  details,   see  Daily  Situation.     During  the  night  of  3  Jul. 
nuisance-  raids  by  single  planes  on  Rone  were  report ed6     No  bombs 
were  dropped. 

Eastern  Front: 

No  special   reports  have  been  received  from  the  area  of  the 
stern  Front  or  from  the  operational  area  of  5th  Air  Force e 

711.     Warfare  in  the  Mediterranean  and  Black  Sea: 

lo  Enemy  Situation:   Mediterranean: 

On  the  evening  of   2  Jul.,   11  freighters  with  5  escort 
vessels  and  1  destroyer  in  tew  left  Gibraltar  for  the  Atlantic. 

■3915,    2  battleships  of  the  XING  G5DBGS  V  -  class  coming  from 
the  Mediterranean  and  3  destroyers  entered  the  harbor.      Thus,   at  * 
I3OC,   4  battleships,   1  DIDO-class  cruiser,   1  A-J.Cr-T.-class   cruiser, 
5  destroyers,   13   corvettes,   1  US  auxiliary  cruiser,   1  landing 
blat— transport  ship,    7  transports,    6  hospital  ships,   43  freighters, 
11  tankers,    several  small  landing  boats   ana  209  planes  on  th 
jrfield  were  observed.     At  1545,   a  CAIBD-class  cruiser  with  one 
stroyer  put  in  from  the'  Mediterranean.     At  loOO,   the  '. 
flying  the  Admiral! s  flag,   the  RODNEY  and  4  destroyers  left  port. 
This   form ti on  joined  by  the   ILLUSTRIOUS  class  carrier  which  had 
put  cut  for  exercises  en  2  Jul.   and  had  been  repeatedly  reported 
east  of   Gibraltar  on  the  evening  of   2  Jul  and  the  morning  of  3 
Jul.     According  to  intelligence  reports  from' Spain,   gun  fire  was 

=  arved  at  1900  East  of  Gibraltar.     At  2340,   the  AUxlORA-class 
cruiser  also   left  the  harbor  for  the  Mediterranean. 

At   C3C0,    a  c:  of  28  vessels,   including  a  two-funnelled  transport 

was   sighted  from  Ceuta  entering  the  Mediterranean,   According  to  an 
Italian  report  the  convoy  consists  of  18  transports,   1  tanker, 
2  unidentified  units  and  6  escort  vessels.     If  this  information 
is  correct,   the  number  of  transports  is  unusual.     An  FR-ccnvoy 
from  the  USA  is  over  due  since  2  Jul. 


-32-  CO  IfflDEMTIAL 


CONFIDENTIAL 
3  Jul.  1943 

At  0900,  3  more  US  special  vessels  with  3  destroyers  went 
through  the  Straits  of  Gibraltar  into  the  Mediterranean*  They 
appeared  to  be  landing  operation  vessels  but,  according  to 
Spanish  reports,  they  were  mine-layers. 

Only  minor  shipping  traffic  was  observed  by  our  air  reconnais- 
sance in  the  Western,  Central  and  Eastern  Mediterranean*  Photo- 
graphic interpretation  of  Malta  as  of  2  Jul.  revealed  only  in- 
significant changes  in  the  number  of  landing  vessels  as  compared 
with  29  Jun«,  Further  interpretation  of  a  photograph  of  Port 
Said  on  2  Jul.  revealed  a  strong  concentration  of  troop  trans- 
ports with  many  boats  on  board  and  10  LCT. 

A  submarine  was  sighted  on  2  Jul,,  30  miles  southwest  of  Leghorne 
Radio  Intelligence  intercepted  several  air  reconnaissance  reports 
in  the  Tyrrhenian  sea  and  in  the  Sardinia  and  Corsica  areas  and 
also  an  enemy  convoy  under  air  alarm  in  the  Bougie  area  and 
another  enemy  convoy  reporting  an  air  attack  in  the  Algiers  area,, 

20    Own  Situation  in  the  Mediterranean: 

Three  Italian  submarines  were  reported  in  the  opera- 
tional area0  Submarine  U  "81",  returning  to  Salamis,  reported 
an  enemy  submarine  in  CO  2648  <, 

In  view  of  the  transfer  to  Toulon  of  the  majority  of  our  sub- 
marines stationed  in  the  Mediterranean,  and  from  the  loss  of 
submarine  U  "303"  and  the  frequent  sighting  of  enemy  submarines 
in  this  area,  Commander,  Submarines,  Italy  believes  that  the 
enemy  is  maintaining  continuous  submarine  waiting  positions. 
Commander  Submarines,  Italy  requests  that  an  efficient  sub- 
marine-chaser group  be  transferred  to  Toulon  for  the  protec- 
tion of  our  incoming  and  outgoing  submarines.   (See  teletype 
1205)o 

On  3  Jul.,  a  naval  landing  craft  with  10  barges  left  Marseille 
for  Toulon.  On  4  Jul.,  4  naval  landing  craft  and  3  tank-barges 
will  leave  Toulon  for  Genoa.  Since  2  Apr.,  18  naval  landing 
craft,  6  motor  minesweepers,  53  tank-barges,  and  10  tank-lighters 
have  left  Toulon  for  Italy,  For  further  details  on  the  status 
of  the  barge  program  see  teletype  1545 » 

3o    Sea  Transport  Situation: 

In  the  night  of  2  Jul,,  an  unsuccessful  enemy  air 
attack  with  bombs  and  torpedoes  was  made  on  the  Sardinia  -  Italy 
convoye  The  steamer  C0LLEVILLE  ran  aground  near  Civitavecchia 
at  1400  on  3  Jul*,  while  enroute  from  Spezia  to  Naples.  The  re- 
maining transport  traffic  to  the  islands  was  carried  out  without 
incident.  For  details,  see  teletype  1815 • 

-33-  CONFIDENTIAL 


CONFIDENTIAL 
3  Jul.  1943 

4»    Area  Naval  Group  South: 

Aegean: 

Submarine  chasing  south  of  Leros  on  the  evening  of 
2  Jul,  produced  no  results 0  Another  enemy  submarine  was  re- 
ported 50  miles  northwest  of  Suda  on  the  evening  of  3  Jul.  On 
2  JulP,  incursions  and  bombing  by  single  enemy  aircraft  were 
reported  from  the  coastal  areas  of  the  Western  Peloponnese  and 
the  islands  of  Western  Greece.   Damage  was  slight.   Two  enemy 
planes  were  shot  down  during  a  bomb  and  gunfire  attack  on  a 
dredger  near.  San  Maura  on  the  morning  of  1  Jul* 

It  is  reported  that  the  Italian  torpedo  boat  SAN  MRTINO,  as- 
signed to  replace  the  HERMES  will  be  ready  to  sail  on  15  Jul, 
Transport  and  convoy  traffic  in  the  Aegean  was  without  incident* 
In  connection  with  the  use  of  the  BULGARIA  for  mine  laying  op-  ^> 

erations  in  the  Dodecanese,  Naval  Staff  has  asked  Group  South 
and  Commanding  Admiral,  Aegean  for  reports  on  the  general  plan 
and  the  barrage  operations  so  far  carried  out  in  the  Dodecanese <, 

Black  Sea: 

Enemy  Situation: 

According  to  Radio  Intelligence,  there  was  a  submarine 
35  miles  southeast  of  Theodosia. 

Own  Situation: 


The  patrol  line  in  Temriuk  Bay  reported  strong  enemy 
air  activity  and  bombing  off  the  Temriuk  Channel  (Canal  ?)  and 
along  the  coast0 

Four  boats  of  1st  PT  Boat  Flotilla  will  be  operating  in  the  area 
30  miles  northwest  of  Tuapse  during  the  night  of  3  Jul.  Two 
Italian  midget  submarines  left  for  the  operational  area  60  miles 
southeast  of  Constantza, 

Naval  Artillery  Lighters  "1",  "2",  and  "3"  are  reported  in  ac- 
tion status  at  Mariupol o 

The  supply  traffic  to  the  Gotenkopf  position  was  carried  out 
according  to  plan* 

To  an  inquiry  by  Naval  Staff  as  to  the  probable  date  of  war 
readiness  of' the  Italian  midget  submarines  and  relative  opera- 
tional plans,  Group  South  reports  that  enemy  submarine  activity 
in  the  Black  Sea  has  apparently  shifted  to  the  western  part  of  the 


-34-  CONFIDENTIAL 


' 


CONFIDENTIAL 

3  Jul.  1943 

Crimea.  With  a  view  to  the  main  task,  the  Group  considers  it 
inadvisable  to  withdraw  our  own  submarines  to  combat  them  in 
that  area.  The  Group  believes  that,  as  recent  operations  have 
shown  the  disruption  and  interception  of  enemy  traffic  on  the 
Caucasian  Coast  will  become  increasingly  successful  as  the 
Command  and  officers  gain  in  experience.   Nevertheless,  the 
Group  intends  to  use  the  Italian  midget  submarines  for  submarine 
chasing  as  they  are  unsuitable  for  operations  on  the  Caucasian 
coast.   In  the  meantime,  the  boats  have  become  operational  and 
are  soon  to  be  transferred  to  the  Crimea.  It  is  planned  to  use 
them  along  the  convoy  routes  in  the  enemy  submarines'  waiting 
areas  during  darkness. 

Naval  Staff  approved  these  plans* 

VIII,  Situation  East  Asia: 

The  Anglo-American  press  estimates  that  there  are  30,000  Japanese 
troops  in  the  central  Solomon  Islands  and  about  25,000  in  the 
Salamaua/Lao  area.   The  papers  quote  Allied  Headquarters  to  the 
effect  that  the  present  USA  offensive  is  not  merely  a  matter  of 
jumping  from  one  island  to  the  next*   The  Japanese  bases  which 
are  now  under  attack  are  said  to  be  so  important  that  their 
capture  would  make  possible  a  big  leap  forward  without  having 
to  touch  the  islands  in  between. 

The  Japanese  Headquarters,  about  15  kilometers  from  Munda,  is 
said  to  be  under  almost  uninterrupted  attack  by  Navy  dive  bombers. 
It  is  stated  that,  at  some  places,  Japanese  resistance  in  the  air 
has  almost  completely  ceased.   The  bridgeheads  in  Nassau  Bay 
in  New  Guinea  have  been  consolidated  and  unloading  of  troops  and 
material  reported  to  be  going  on  without  interference.  The  sit- 
uation on  Salamaua  is  regarded  as  hopeless. 

No  Japanese  statements  on  the  situation  have  been  received  today 0 

4  Jul.  1943 
Sunday 

Items  of  Political  Importance 

No  reports  of  naval-  significance  have  been  received. 

Conference  on  the  Situation  with  the  Chief,  Naval  Staff,, 

Report  by  Naval  Staff,  Operations  Division,  Operations  Branch: 

Naval  Staff,  Naval  Intelligence  Division  has  prepared  a  map  of 
the  enemy  vessels  reported  in  the  Ray.  of  Biscay  and  vicinity 
during  the  period  20  Jun.  to  3  Jul.  1943 •  A  great  number  of 

-35-  CONFIDENTIAL 


COLIFIDENTIAL 
4  Jul.  1943 
Sunday 

the  positions  plotted,  do  not  fit  in  with  the  movements  of  con- 
voys e  Observations  made  by  submarines  lead  to  the  conclusion 
that  anti-submarine  groups  of  light  naval  forces  are  present 
in  the  western  part  of  large  grid  square  BF.  The  Observation 
Service  believes  that  these  groups  consist  at  least  of  de- 
stroyers, whereas,  according  to  observations  by  submarines, 
they  are  mainly  composed  of  corvettes.  Where  their  operational 
range  permits,  our  destroyers  should  be  used  to  attack  these 
groups:  Reliable  reconnaissance  will  be  essential  if  the  de- 
stroyers are  to  be  used  for  this  purpose. 

Chief,  Naval  Staff  concurs,,  The  following  directive  has  been 
sent  to  Group  West  and  Naval  Staff,  Submarine  Division  and  to 
Commander  Submarines,  West,  for  information: 

The  positions  of  enemy  naval  forces  in  grid  squares  BF  10,  40 
and  70  and  in  BE  60  and  90,  as  lately  established  by  Observa- 
tion Service  and  by  air  reconnaissance,  indicate  the  presence 
in  the  outer  Bay  of  Biscay  of  light  enemy  naval  forces  which  do 
not  seem  to  be  part  of  the  convoy  system.  Submarine  reports  on 
corvettes  together  with  the  losses  sustained  indicate  that  the 
enemy  is  using  anti-submarine  groups  in  this  area.  The  main 
zone  of  operations  is  believed  to  be  northwest  of  Cape  Finisterre 
and,  also,  the  sea  area  west  of  Brest0   The  question  of  whether 
the  enemy  positions  in  that  area  form  part  of  the  sea-rescue 
service  is  still  under  investigation.  It  is  desirable,  if  their 
presence  is  confirmed,  that  these  submarine  chaser  groups  should 
be  attacked  by  destroyers.  This  can  only  be "done  on  the  basis 
of  adequate  submarine  and  air  reconnaissance*  Group  West  will 
issue  further  orders  and  will  report  its  plans.  Naval  Staff, 
Submarine  Division  will  see  that  all  reports  of  reconnaissance 
value  from  incoming  or  outgoing  submarines,  up  to  at  least  15° 
st,  are  forwarded  to  group  west0 

Chief,  Naval  Staff  also  desires  that  consideration  be  given,  and 
a  systematic  plan  elaborated,  as  to  the  way  in  which  regular  pro- 
tection could  be  provided  for  the  submarines  in  the  Bay  of  Biscay 
by  suitable  use  of  the  available  forces,.  The  possibility  of  re- 
inforcing them  by  means  of  two  more  destroyers  should  be  inves- 
tigated. Light  forces,  submarines  with  anti-aircraft  guns  and 
planes  will  be  chiefly  required  besides  which, -  it  is  important 
to  assess  the  advantages  and  disadvantages  of  several  submarines 
sailing  in  company «  The  first  points  to  be  established  are  in 
which  areas  the  boats  are  most  seriously  threatened  and  where 
protection  can  be  guaranteed. 

The  .following.. directive  ^was  therefore  sent  to  Group  West: 

-36-  CONFIDENTIAL 


' 


f 


CONFIDENTIAL 
4  Jul.  1943 
Sunday 

In  cooperation  with  Commander  Submarines,  West  and  3rd  Air 
Force,  please  submit  views  and  suggestions,  based  on  local 
conditions,  in  regard  to  the  establishment  of  regular  pro- 
tection for  submarines  entering  or  leaving  the  Bay  of  Biscay, 
in  accordance  with  the  means  available.  An  increase  in  de- 
stroyers and  torpedo  boats  may  be  necessary.  It  is  planned 
to  use  chiefly  light  forces,  submarines,  with  anti-aircraft 
guns  and  air  forces,,  It  is  important  to.  establish  in  which 
area  the  threat  to  the  submarines  is  greatest  and  then  to  ascer- 
tain where  protection  can  be  assured.   Investigate  advantages 
and  disadvantages  of  submarines  sailing  in  groups.  Report  re- 
sults as  soon  as  possible. 

For  copy  of  teleprint  l/3kl  18931  and  18992/43  Gkdos  see  War 
Diary,  Part  C,  Vol.  II  b„ 

Special  Items: 

I„    On  22  Jun„  High  Command,  Navy,  Naval  Ordnance  Division 
informed  Naval  Staff  of  summary  of  information  on  the  use  of 
technical  devices  in  defence  against  landing  attempts,  which  had 
been  suggested  as  a  basis  for  inter-service  discussions  be- 
tween High  Command,  Army  and  High  Command,  Air  Force,  Commander 
in  Chief, -Air  Force.  For  copy  as  per  l/Skl  18021/43  Gkdos  see 
War  Diary,  Part  C,  Vol.  X„ 

Naval  Staff,  Operations  Division  suggests  that  Naval  Ordnance 
Division  should  make  this  summary  available  to  the  Naval  Group 
Commands  and  Commanding  Admirals  as  it  contains  a  great  deal  of 
information  of  interest  to  Commanding  Officers  in  charge  of 
coastal  defense,, 

II.   'The  following  agreement  was  reached  on  31  May .between 
Chief,  Armed  Forces  High  Command,  Intelligence  Division  and  the 
Special  Representative  of  Commander  in  Chief,  Navy,  Vice  Admiral 
Weichold,  in  regard  to  special  operations  in  Iceland. 

10    An  agent  will  be  sent  to  Iceland  by  Armed  Forces 
High  Command,  Intelligence  Division,  Sabotage  Section  via  German 
Intelligence  Substation,  Oslo,  by  means  of  a  Navy  vessel  (sub- 
marine), to  carry  out  the  sabotage  missions  desired  by  Naval 
Staff.  The  agent  will  go  as  an  independent  operator  having  no 
connection  with  or  knowledge  of  ether  operations # 

2.    Division  "Brandenburg"  will  provide  one  operational 
detachment  from  its  commando  battalion  to  which  Intelligence 
Division,  Sabotage  Section  will  attach  combat  interpreters.   The 

-37-  CONFIDENTIAL 


4  Jul.  1943 

5"ii —  ! — F 

division  will  try  to  select  cc     .::s  wit  I;  sea- going  experience 

1   training  for  this  purpose.  The  Navy  will  handle 
transportation  in  both  directions.   (Fishir.    icks  cr  similar 

vessels) -> 

roup  North  Fleet  will  be  in  charge  of  the  Havy's  part  of  the 
operation.     For  copy  of  the  directive  l/Skl  I  op  1760/43  Gkdos 
:fs,    see  War  Diary,   Part  C,   Vol.   II  a0 

Situation  on  4  Jul.   1943 

I j         *>.r  in  Foreirr.  "-.tors: 

Nothing  to  report, 
II,   Situation  in  the  "est  Area: 

1„    Enemy  Situation; 

Twenty  planes  wer~  detected  over  the  Bay  of  Biscay. 
At  2217,  a  British  ship  was  located  in  BF  4847 • 

2.    Oar.  Situetion: 

..elantic  Coast: 

One  HI-/ J  nine  was  cleared  off  Loriont  and  one  off 
St.  Nazaire.  Seventy- five  vessels  totalling  36,000  BRT  were  es- 
certed  in' the  Bay  of  Biscay  between  16  and  30  Jun.  Amongst  other 
things,  9,200  tons  of  ore  were  thus  imported  from  Spain. 

The  MDEWE  and  the  JAGUAR  left  La  Pallice  at  1500  for  submarine 
sistance  (s:.  War  Diary  3  Jul.), 

Between  1140  and  1355,  La  Pallice  was  attacked  by  20  -  40  enemy 
planes  at  an  altitude  cf  4,000  raters.  The  attack  was  concen- 
trated en  the  outer  harbor  and  the  dockyards.  Two  motor  boats 
were  sunk  in  the  outer  harbor.  *  In  the  dockyards,  mine  exploding 
vessel  "16      heavily  damaged,  a  300-ton  crane  capsized,  a 
big  floating  crane  was  heavily  damaged  and  the  big  dock-gate 
destroyed  by  a  direct  hit,  Destroyer  Z  "23"  floated  out  into 
the  big  dock  undamaged  but  will  be  unable  t:  Leave  until  the  dock 
gate  is  moved*  Torpedo  boat  T  "23",  by  the  north  wharf  was  also 
undamaged.  The  KCNDOR  suffered  damage  and  ca sualties «,  For 
further  results  of  the  attack,  see  teletype  2C05,  2140,  2355  ^nd 
0200., 


-33-  CONFIDENTIAL 


confidential 


4  Jul.  1943 
Sunday 


According  to  reports  so  far  received,  4  of  the  attacking  planes 
were  shot  down  by  anti-aircraft  fire,  a  fifth  by  fighters  and  a 
sixth  by  anti-aircraft  fire  and  fighters.  Eighteen  US  soldiers 
bailed  out  and  were  taken  prisoner » 

At  lie  de  Re,  a  defense  post  was  wiped  out  by  a  direct  hit.  A- 
nother  attack  was  Dado  on  Mantes  by  120  planes  which  dropped 
200  high  explosive  bonbs  from  63OO  -  76OO  meters  altitude/'  The 
Heinkcl  works  were  heavily  damaged.  A  drop  in  production  of 
80$  is  likely. 

Channel  Coast: 

Between  2350  and  0030,  on  the  ni^it  of  3  Jul., 
several  enemy  targets  were  located  in  the  Calais  area.  Flares 
and  searchlights  revealed  nothing.   The  same  ni^it,  heavy  ex- 
plosions far  out  to  sea  were  reported  from  Boulogne,  Dieppe  and 
Cherbourg,   Torpedo  boats  T  "24"  and  "25"  did  not  proceed  from 
Dunkirk  to  Boulogne  as  planned  because  of  the  enemy  locations 
and  suspected  mine  laying,, 

In  the  afternoon,  150  -  200  four-engine  enemy  bombers  flew  over 
the  Le  Trcport  -  Cherbourg  area  without  dropping  bombs <, 

Torpedo  operations  on  the  south  coast  are  planned  for  4th  and 
5th  PT  Boat  Flotillas  during  the  night  of  4  Jul.  depending  on 
reconnaissance  results,, 

North_ SeaY  Norway,  Northern  Waters: 

North  Sea:  I 

■'■■-  — 

In  the  night  of  3  Jul.,  single  enemy  planes  flew  in 
near  Flushing  and  probably  laid  mines  north  of  Borkum.   Trans- 
port installations  in  the  Netherlands  were  strafed. 

Four  ELM/j-mines  were  cleaned  ahead  of  convoys  near  Vlieland, 
Ameland  and  Terschellingr  Casualties  occurred  during  an 
attack  by  2  enemy  fighters  on  2  patrol  boats  north  of  Norderney.: 
Otherwise  escort  and  patrol  services  in  the  area  of  Commanding 
Admiral,  Defenses  North  was  carried  out  without  incident, 

Norway,  Northern  Waters: 

c 

1«  Enemy  Situation: 

Thirty-four  planes  were  observed  in  operation 
over  the  North  Sea,     No  enemy  forces  were  sighted  during  night 


-39-  CONFIDENTIAL 


CONFIDENTIAL 
4  Jul.  1943 

Sunday 

reconnaissance  off  the  east  coast  of  Iceland  and  in  the  eastern 
Denmark  Straits.  At  1725,  12  merchantmen  with  3  guard  vessels 
were  sailing  south  140  miles  southeast  of  Iceland,,  Group  North 
Fleet  believe  that  this  was  a  returning  Iceland-Scotland  supply- 
convoy  or  an  American  convoy  only  touching  at  Iceland.  Further 
reconnaissance  for  the  naval  forces  reported  on  3  Jul.  was 
flown  in  the  afternoon. 

According  to  an  intelligence  report  of  3  Jul.  from  an  agent  in 
England,  the  US  cruisers  ALABAMA,  SOUTH  D.JCOTA  and  5  destroyers 
have  joined  the  Home  Fleet  and  will  probably  leave  with  it  for 
the  north  about  8   Jul, 

An  intelligence  report  from  diplomatic  sources  in  Portugal  states 
that  a  large  convoy  was  ready  to  sail  at  Halifax  on  24  Jun.,  and 
comprised  of  several  steamers  of  the  EMPRESS  class  and  the 
steamers  MONTCALM  and  MONTREAL.  Departure  for  England  is  ex- 
pected to  take  place  in  several  groups  starting  on  8   Jul.  War 
material  stored  at  ports  in  the  Halifax  area  includes  mountain 
artillery  and  there  are  also  2500  motor  sleighs,  a  Large  number 
of  skis,  snow-shoes-,  cases  of  electrically-heated  uniforms  and 
runners  for  aircraft  ready  for  shipment.  It  is  therefore  suspec- 
ted that  the  troops  and  material  leaving  this  port  are  intended 
for  operations  in  the  Far  North,  Another  intelligence  report 
from  Portugal  states  that  a  convoy  carrying  35,000  men  is  sched- 
uled to  leave  Halifax  for  England  on  5  Jul,  Escort  vessels  are 
waiting  in  the  St.  Johns  area, 

2,    Own  Situation: 

In  the  afternoon  of  3  Jul.,  enemy  air  for- 
mations of  7  -  8   planes  each  were  sighted  near  Aale sound  and 
between  Floroey  and  Askevold.  Our  fighters  made  no  contact 
vdth  the  enemy*,  Anti-aircraft  fire  produced  no  results. 

At  1010,  submarine  U  "586"  was  unsuccessfully  attacked  by  a  fan 
of  3  torpedoes,  which  missed,  and  later  by  gunfire,  from  a 
British  submarine  in  AB  3647* 

The  four  submarines  of.  group  "Monsun"  which,  on  3  Jul,,  had 
moved  their  operatio  al  area-  about  30  miles  to  the  north  because 
of  the  receding  ice  boundary,  have  now'moved  30  miles  in  direc- 
tion 250°  to  avoid  the  enemy  submarine,, 

The  four  submarines  newly  assigned  to  Commander,  Submarines, 
Norway  arc  expected  at  Narvik  on  the  morning  of  6  Jul.  on  their 
way  from  Bergen  to  the  north. 


-40-  CONFIDENTIAL 


CONFIDENTLY 
4  Jul.  1943 

Sunday  ■ 

The  escort  service  of  Naval  Command  Norway  accompanied  45  north  ' 
bound  and  23  south  bound  ships,  In  the  area  of  the  Arctic  Coast, 
8  ships  are  held  up  due  to  lack  of  pilots. 

With  reference  to  an  inquiry  from  Commander. in- Chief,  Air  Force, 
Operations  Staff  in  regard  to  the  weather  service  (see  War  Diary 
3  Jul*),  Naval  Staff  has  advised  Chief  of  Operations  Branch 
(Navy)  as  follows: 

"Extensive  plans  are  being  made  by  Chief,  Navy  Meteorological 
Service,  in  cooperation  with  Chief,  Air  Force  Meteorological 
Service  for  the  establishment  of  a  weather  observation  network 
in  the  northern  area. 

The  following  stations  are  planned: 

Radiosonde  stations  in  Eastern  Greenland,  North  Spitzbergen  and 
Alexandra  land. 

Meteorological  buoys  at  73 °N«  and  8°E.,  Bear  Island,  in  the 
central  Barent  Sea  and  off  the  northwest  coast  of  Novaya  Zemlya„ 

Preparatory  considerations:  Previous  experience  has  shown  that 
considerable  risk,  much  time  and  many  difficulties  are  involved 
in  setting  up  the  stations  by  ships,  It  is  therefore  necessary 
to  submit  an  immediate  request  for  one  or  two  cargo  fl2n.ng  boats 
to  be  made  available  on  the  grounds  that  Holzauge  was  brought 
back  successfully.  The  French  70-ton  flying  boats  now  becoming 
ready  would  appear  to  be  especially  suitable.  Landing  is  possi- 
ble everywhere.  The  request  must  be  submitted- to  Operations 
Staff  and  inquiry  made  of  the  Director  General,  Air  Force  Equip- 
ment, as  to  when  the  flying  boats  are  expected  to  be  ready, 

IV,   Skagerrak,  Baltic  Sea  Entrances ,  Baltic  Sea : 

1,  Enemy  Situation: 

In  Kronstadt  roads  mine  clearing  operations  were  con- 
tinued.   43  Guard  boats  and  1  patrol  boat  were  sighted  in  the 
Lavcnsari  area.  At  03 00,  there  were  9  minesweepers  and  2  sub- 
marines sailing  southwest  at  a  speed  of  11  -  17  knots  in  AO 
3379c 

2,  Own  Situation: 

One  ground -mine  was  cleared  near  laddelgrund.  East 
of  Falshoeft  a  mine  explosion  was  observed,,  The  tanker  DIEDEN- 
HOFEN  was  damaged  by  striking  a  mine  near  ILaerket,  west  of  the 


-41-  CONFIDENTLY 


CONFIDENTIAL 


4  Jul.  1%3 


Sunc1.  ay 


Aaland  islands,  but  is  trying  to  reach  Germany,  An  investi- 
gation will  bo  held  as  to  why  the  ship  went  through  that  area 
which  has  been  closed  since  the  beginning  of  the  warc 

No  other  special  incidents  have  been  reported  from  the  Baltic 
Area. 

V.    Merchant  Shipping: 

Due  to  unusually  mild  weather,  a  record  was  reached  in 
shipments  from  Lulea' during  the  month  of  May.  Seven  hundred  and 
eighty  thousand  tons,  which  amounted  to  59$  of  the  total  Swedish 
ore-shipment  quota  for  this  month,  were" shipped  as  compared  with 
98$  for  the  same  month  last  year  (sic.)e 

Shipments  from  Narvik  of  282,000  tons  in  May  1943  also  reached 
the  highest  figure  since  the  occupation  of  Norway  (21.2$  of  the 
total  shipments  as  against  14<>8$  in  May  1942„) 

VI o   Submarine  Warfare: 

1.    Enemy  Situation: 

Nothing  to  report* 

2e    Own  Situation: 

Submarine  U  "420"  was  heavily  damaged  by  depth 
charges  dropped  by  an  enemy  plane  in  A J  15,  and  is  returning 
to  port*  This  leaves  only  two  submarines  in  the  North  Atlantic 
to  carry  on  decoy  radio  service^ 

VII B  Aerial  Warfare: 

British  Isles  and  Vicinity: 

For  the  air  attack  on  La  Pallic^  and  Nantes,  see  "Situation 
West  Areac"  Besides  attacking  Nantes,  the  formations  that 
entered  the  Cherbourg  area  carried  out  attacks  in  groups  on  Le 
Mans  (motor  works)*  Twenty-three  of  the  attacking  pianos  were 
brought  down*  Attacks  on  transport  installations  in  the  Amiens 
area  cost  the  enemy  3  more  spitfires,  so  that  the  day's  score 
in  the  West  xlrea  including  La  Pallice,  amounted  to  32  planes. 

During  the  night,  five  harassing  flights  were  mr.de  into  the 
Cberhausen-Muchlhein  area  and  30  incursions  into  Western  France, 
including  20  mine-carrying  planes  in  the  Gironde  estuary,  were 
report edc 

-42-  CONFIDENTIAL 


' 


CONFIDENTIAL 
4  Jul.  1943 

Sunday 

There  have  been  no  reports  of  activities  by  our  air  forces  in 
the  West  Area. 

Mediterranean  Theater : 

Our  Air  Force  intensified  its  reconnaissance  activities 0 
Enemy  attacks  on  Trapani  during  the  night  of  3  Jul.  caused  only 
insignificant  military  damage „  Several  bombs  were  dropped  on 
Ostia  harbor  but  no  damage  was  done.  During  daylight,  air  fields 
in  Sicily  were  repeatedly  attacked.   Heavy  damage  was  caused  at 
Catania  where  5  of  our  planes  were  destroyed.  At  Comiso,  5  Me 
109  planes  were  slightly  damaged.  During  these  attacks,  5 
enemy  planes  were  brought  down  by  anti-aircraft  fire  and  20  by 
fighters  in  aerial  combat,  with  a  loss  of  6  of  our  own  planes 0 

Eastern  Front; 

One  enemy  plane  was  shot  down  by  fighters  during  an  in- 
cursion by  9  enemy  planes  into  the  Trondheim/lCristiansund  area,, 

Of  30-35  enemy  planes  (Hamptons  with  Russian  crews)  which  from 
2100  to  2200  unsuccessfully  attacked  one  of  our  convoys  near 
Vardoe  with  aerial  torpedoes,  19  were  shot  down  by  the  convoy's 
covering  planes. 

Villa  Warfare  in  the  Mediterranean  and  Black  Sea; 

1.    Enemy  Situation; 

The  CAIRO-class  cruiser  which  entered  Gibraltar  in 
the  afternoon  of  3  Jul.  had  not  come  from  the  Mediterranean  but 
from  the  Atlantic,  and  left  for  the  Mediterranean  in  the  evening 
of  the  same  day  followed  by  the  ^URORA-class  cruiser.  Shortly 
after  midnight  on  4  Jul.,  a  big  eastbound  convoy  was  report 
from  Tangiers„  Information  on  its  strength  is  contradictory. 
According  to  Italian  reports  between  0630  and  0730,  18  steamers, 
1  transport  and  6  escort  vessels  passed  Ceuta  sailing  east, 
while,  during  the  same  period,  2  big  transports  with  planes  on 
deck,  7  freighters  and  4  escort  vessels  put  into  Gibraltar.  Ac- 
cording to  another  report,  the  convoy  apparently  consisted  of  1" 
converted  aircraft  carrier,  8  big  troop-  or  material-transp*  rts, 
5  big  tankers,  27  medium  freighters  and  15  light  vessels.  The 
number  of  war-ships  in  Gibraltar  at  noon  was  unchanged  from  the 
day  before.  Both  of  the  KING  GEORGE  V-class  units  were  there- 
fore still  in  porto 

The  convoy  of  28  ships  which  entered  the  lieditcrranean  early  on 
3  Jul,  was  identified  by  one  of  our  submarines  at  2140  on  3 
Jul0  in  CH  8295o 

-43-  CONFIDENTIAL 


CONFIDENTIAL 
4  Jul.  1943  ""■ 

Sunday 

according  to  air  reconnaissance,  at  0810,  there  was  a  big  west- 
bound convoy  consisting  of  26-  ships  with  destroyers  and  planes 
north  northwest  of  Cape  Tenes,  and  a  convoy  of  25  merchantmen 
with  an  aircraft  carrier  and  3  warships  -  one  of  which  was  re- 
ported by  our  fighters  to  be  a  battleship  -  10  miles  north  of 
Cape  Serat.  Otherwise,  only  minor  shipping  traffic  was  observed 
off  the  Algerian  and  Tunisian  coasts. 

Submarines  were  reported  on  3  Jul.  south  of  Salerno  and  on  4  Jul„ 
scuta  of  Civitavecchia,  southeast  of  Elba  and . north  of  Messina* 

At  0138,  an  unidentified  ship  of  medium  size  bombarded  the  coast 
near  Syracuse. 

In  the  Eastern  Mediterranean,  according  to  an  Italian  report  at 
0857,  there  were  14  medium-sized  steamers  and  5  small  warships 
40  miles  northwest  of  Alexandria.  The  course  was  not  given. 

According  to  an  intelligence  report,  there  are  35  English  and 
American  transports  in  Alexandria  and  15  in  Port  Said  which  is 
not  going  to  be  unloaded.  Concentration  of  a  total  of  180,000 
men  is  reported  from  Derna,  Tobruk,  Marsa  Matruk0  In  these 
ports  there  are  said  to  be  500  landing  vessels  with  a  capacity 
of  300  men  or  9  tanks  each  and  40  tank-transport  ships  with  a 
capacity  of  20  tanks  each.  Three  thousand  planes  are  said  to  be 
assembled  in  the  area  between  Derna  and  Alexandria.  The  attack 
on  Greece,  Crete  and  the  Aegean  islands,  for  which  all  these 
preparations  have  been  made,  is  expected  to  start  on  15  July. 

The  report  was  forwarded  by  the  Intelligence  Service  with  reser- 
vat  ions „ 

2e    Own  Situation,  Mediterranean: 

Four  boats  of  the  7th  PT  Boat  Flotilla  moved  from 
Porto  Vesme  to  Cagliari.   The  mineships  P0MHERN  and  BRANDENBURG 
moved  from  iiaddalena  to  Leghorn  in  the  night  of  2  Jul.  after 
having  completed  the  mine  operation  as  scheduled,.   The  damaged 
torpedo  boat  TA  "9"  arrived  at  Toulon  in  the  afternoon  of  3  Jul» 

At  2140,  submarine  U  "375"  probably  sank  a  steamer  of  8,000  BRT 
in  an  es.stbound  convoy  in  CH  8295  with  a  Pi  2  torpedo.  The  sub- 
marines sent  out  against  the  eneny  battleships  in  the  Western' 
Mediterranean  reported  their  positions  as  CG  9&13  °^  the  Spanish 
coast  and  CH  7757  off  the  African  coast* 

German  Naval  Command,  Italy  reports  that  the  first  mine-barrage 
section  off  the  probable  landing  places  in  Sardinia  has  been 

-A4-  coi>ifidential". 


CONFIDENTIAL 
4  Jul.  1943 
Sunday 

completed  from  Cagliari  to  Oristano.  It  is  planned  to  expedite 
the  work.  'The  mining  of  landing  places  on  the  Sicilian  coast  is 
possible  only  between  Trapani  and  Mazzara  because  the  Italian 
minelayers  have  a  speed  of  only  5  knots,  German  Naval  Command 
Italy  again  urgently  requests  the  provisional  assignment  of  the 
next  3  motor  minesweepers  and  of  motor  minesweeper  R  "38"  (see 
teletype  1015). 

In  a  personal  telegram  to  Commander  in  Chief,  Navy,  Commanding 
General,  South  requests  support  for  the  new  Siebel  ferry  con- 
struction program,,  (See  teletype  2310). 

Group  West  reports  that,  in  the  area  of  6th  Defense  Flotilla  in 
the  Mediterranean,  15  warships  and  66  merchantmen  for  76,000  BRT, 
including  16  merchantmen  for  16,000  BRT  in  the  Spain  traffic,  were 
escorted  between  16  and  30  Jun. 

3,    Sea  Transport  Situation: 

The  steamer  3ABBIA,  on  the  supply-run  to  the  islands, 
was  torpedoed  by  an  enemy  submarine  south  of  Civitavecchia  but 
was  towed  in.  The  steamer  COLLEVTLLE  which  ran  aground  on  3  Jul., 
also  entered  Civitavecchia.  Other  supply  traffic  was  carried 
out  according  to  plan  and  without  incident. 

The  Reich  Commissioner  of  Maritime  Shipping,  Deputy  for  German 
Sea  Transportation  in  the  Mediterranean  has  forwarded  to  High 
Command  Navy,  Naval  Staff  his  observations  in  regard  to  the  delays 
to  shipping  in  the  Aegean  supply  traffic  made  during  a  flight 
from  Piraeus  to  Baric  He  requests  that  German  Naval  Command  Italy 
intervene  so  that  the  German  ships  that  are  being  held  back  may 
receive  immediate  sailing  orders.  Furthermore  he  requests  that 
to  prepare  for  all  eventualities,  a  German  liaison  officer  be 
appointed  at  Corfu  to  act  simultaneously  as  liaison  officer  with 
Commanding  Admiral,  Aegean,  and  that  the  limitation  of  Command- 
ing Admiral,  Aegean' s  responsibility  to  Patras  be  reviewed  and 
the  possibility  of  extending  his  jurisdiction  to  Corfu  and  Valona 
considered. 

Naval  Staff  has  asked  for  the  opinion  of  Group  South,  German 
Naval  Command,  Italy  and  Commanding  Admiral,  Aegean  in  regard  to 
these  requests e   For  copy  of  teletype  l/Skl  18986/43  Gkdos  see 
War  Diary,  Part  C,  Vol.  XI . 

4 o    Area  Naval  Group  South: 

Aegean: 


-45-  CONFIDENTIAL 


CONFIDENTIAL 
4  Jul.  1943 

Sunday 

On  2  Jul,,    an  enemy  submarine  sank  a  Greek  sailing 
vessel  by  gunfire  -  west  of  Rhodes.     At  0108  on  4  Jul,,   the  steamer 
VESTA    (3,351  BRT),    in  convoy  from  Leros  to  Syra,   was  torpedoed 
by  an  enemy  submarine  west  of  Leros,   but  was  towed  in  to  port. 

Group- South  reoorts  that,   during  the  m.nth  of  June,   33   steamers 
of' 98,013  BRT  were   escorted  in  the  Aegean  and  59  steamers  of 
69,964  HIT  sailed  without  escort0 

The  turn-around  in  the  Aegean  ports  amounted  to  a  total  of  105,959 
tens  of  which  51,078  tons  were  handled  in  Piraeus  alone,    21,366 
tons  at  Salonika  and  12,977  tons  in  the  ports  of  Crete*     Eight 
auxiliary  sailing  vessels  were  sunk  and  1  auxiliary  sailing 
vessel  deserted  to  Turkey 0 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report a 

Own  Situation: 

During  the  night  of  3  Jul.,  the  1st  PT  Boat  Flotilla 
was  forced  to  break  off  operations  on  the  Caucasian  coast  owing 
to  bad  weather.  Operations  by  1st  and  11th  PTBoat  Flotillas 
also  had  to  be  cancelled  on  the  night  of  4  Jul.  The  patrol  po- 
sitions in  Temriuk  Bay  were  taken  up  according  to  plan. 

Naval  Artillery  Lighters  "5"  -  "8"  will  move  from  Sevastopol  to 
Kerch  on  5  Jul, 

A  minesweeping  plane  crashed  following  a  mine  explosion  during 
an  operation  West  of  the  northern  entrance  to  Kerch  Straits c 
The  crew  was  rescued0 

The  supply  traffic  was  carried  out  according  to  plan  and  with- 
out incident. 

IX,       Situation  in  East  Asia: 

Nothing  to  report* 


-46-  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943 

Items  of  Political  Importance : 

According  to  Reuter,  the  British  Minister  of  Supply  has  stated 
that  England  is  going  to  cut  down  the  production  or  munitions  in 
favor  of  shipbuilding  and  the  procurement  of  aircraft  as  muni- 
tions stocks  are  now  adequate,, 

Conference  on  the  Situation  with  Chief.  Naval  Staff: 

I.    Submarine  Construction: 

The  question  of  whether  to  build  type  XXII  or  type  XVII  (smal- 
ler type  of  the  Walter  Submarine)  or  both  is  to  be  settled  by 
Maval  Construction  Division  and  Naval  Staff , '  Quartermaster  Divi- 
sion, Submarine  Section.  Commanding  Admiral,  Submarines  will 
participate  in  the  discussion.  On  technical  grounds*,  Chief 
Naval  Construction  Division  advocates  that  work  be  started  on 
both  types,, 

Another  point  discussed  was  whether  type  XVIII  (Walter)  or  type 
XXI  (Brooking)  is  preferable.   The  special  advantage  of  type 
XXI  is  that  series  construction  could  be  started  at  an  early 
date  as  the  propulsion  units  have  been  tested  and  are  already 
available  However,  the  extent  to  which  inclusion  of  both  types 
in  the  building  program  will  affect  the  general  problems  of  ca- 
pacity and  completion  in  regard  to  Submarine  construction  and 
repair  remains  to  be  examined e 

No  final  decision  will  be  taken  until  this  investigation  has  been 
madee. 

II0   Conference  on  the  Situation: 
lo    Army  Situation: 

At  0215,  offensive  operation  "Citadelle"  was  opened 
on  the  Eastern  Front.  The  enemy's  defense  in  the  southern  sector 
is  extremely  strong. 

2fl    With  reference  to  the  question  of  destroyer  operations 
against  the  enemy  anti-submarine  groups  in  the  Bay  of  Biscay 
(see  War  Diary  4  Julo),  Chief  Naval  Staff  commented  that  probably 
only  a  single  successful  action  can  be  expected  as,  after  the 
first  surprise  the  enemy  will  strengthen  his  forces  to  such  an 
extent  that  they  will  be  too  strong  to  be  attacked  by  our  forces 0 
The  advantage  would  then  lie  in  tieing  down  these  increased 
forces  and  keeping  them  engaged.  Chief,  Naval  Staff,  Operations 
Division  called  attention  to  the  critical  fuel  oil  situation 
which  would-be  seriously  felt  in  the  intended  operations *  Chief, 
Naval  Staff,  however  concurred  in  Naval  Staff's  view  that  the 

-47-  CONFIDENTIAL 


cci:filj.:tlx 
5  Jul.  1943 

is  fiv     -  1'-  -i  lit  c.        .ho    'ircctiVwG       sued    ,c  Grai 

"js:.  \il      _'.  ..     fore     hoi  : ... 

3«      ort  by  Chief,  ilavrj.  ;t:r,  C/xr~tions  Division,  Op- 
erations. Branch  in  regard  to  the  suggestions  of  the  Reicn  Commissioner 
oi  Maritime 

/Shipping,  Deputy  for  German  Sea  Transportation  in  the  Mediter- 
ranean concerning  measures  to  prevent  delay  in  the  Aegean 
supply  traffic,  as  per  memorandum  in  War  Diary  of  4  Jul.  ("War- 
fare in  the  Mediterranean,  Sea  Transport  Situation) « 

4»    Chief,  Naval  Staff  approved  the  draft  of  a  reply  to 
Admiral  Riccardi  concerning  the  transport  submarines  ROMOLO  and 
REND.   The  letter,  with  other  documents  on  the  subject,  is  filed 
under  Vfg.  l/3kl  19091/43  Gkdos.  in  War  Diary,  Part  C,  Vol.  IX. 

5.    The  Fuehrer  has  ordered  that  the  account  of  Lieuten- 
ant (N)  Nieger's  successful  and  adventurous  return  be  used  for 
propaganda  purposes. 

III.   Transfer  of  the  1943  Naval  Program  to  the  Reichminister 
for  Armaments  and  Munitions: 

On  3  Jul,,  a  conference  was  held  between  representatives 
of  Naval  Construction  Division  and  Bureau  of  Naval  firmaments  and 
delegates  of  the  Ministry  on  the  effectuation  of  the  transfer  of 
the  1943  Naval  Program  to  the  Ministry,  as  already  agreed  upon 
in  principle. 

Chief,  Naval  Construction  Division  reported  on  this  conference: 
As  an  indispensible  condition  for  their  acceptance  of  responsi- 
bility, the  delegates  of  the  Ministry  asked  that  an  independent 
Central  Conrdttee  and  an  independent  Ship  Building  Commission 
be  set  up  within  the  Ministry,  i.e.  detached  from  High  Command 
Navy.  There  could  be  no  question,  in  the  view  of  Chief,  Naval 
Construction  Division  of  appointing  a  naval  officer  as  head  of 
the  Central  Committee  though,  in  certain  circumstances  one  might 
be  appointed  to  head  the  commission.  The  commission  is  to  be 
composed  of  the  most  capable  constructors,  experts  and  opera- 
tions officers o  It  will  undertake  to  design  and  set  up  the  types 
as  required  by  High  Command,  Navy.   The  Central  Committee  will 
then  provide  the  dockyard  capacity  and  trill  accordingly  suggest 
the  distribution  of  orders  to  High  Command,  Navy.  For  both  bodies, 


-48-  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943  " 

a  considerable  part  of  the  organization  of  Naval  Construction 
Division  will  be  required,  about  1/3  of  which  would  have  to  be 
detached  from  High  Command,  Navy  in  order  to  carry  out  routine 
work  with  the  Central  Committee  and  the  Commission,,  The  re- 
maining third  would,  according  to  this  suggestion,  remain  under 
High  Command,  Navy0   The  delegates  of  the  Ministry  pointed  out 
that  an  indispensable  condition  for  acceptance  of  the  task  was 
that  the  work  be  turned  over  completely  to  the  Central  Committee 
and  the  Commission  and  that  any  compromise  on  that  point  was 
impossible „ 

Admiral  Fuchs  considered  that  the  establishment  of  a  Commission 
with  the  best  brains  and  full  powers,  as  envisaged  by  the  Minis- 
try should  be  warmly  welcomed,.  He  himself  had  been  advocating 
this  repeatedly  for  two  years  -  unfortunately  without  success 0 
Very  strong  objections  must,  however,  be  raised  to  the  separation 
of  the  Commission  from  the  organization  of  High  Command,  Navy. 
In  that  case,  Commander  in  Chief,  Navy  would  have  no  one  who 
would  be  responsible  to  him  for  drafting  the  designs.   The  abso- 
lutely essential  influence  of  the  Military  authorities  could  no 
longer  be  exercised  as  soon  as  the  request  of  High  Command,  Navy 
has  passed  to  the  Commission  since  the  Commission  was  supposed 
to  work  in  complete  independence.  Although  this  might  serve  as 
some  restraint  on  the  naturally  numerous  wishes  of  Naval  Staff 
.  and  might  thus  help  to  speed  up.  the  construction  program,  it  was 
nonetheless  essential  that  the  fundamental  necessity  for  con- 
tinuous military  supervision  of  the  development  and  designing 
of  warships  be  insisted  upon.  Admiral  Fuchs  would  agree  with 
the  suggested  arrangement  if  the  Commission  were  set  up  as  part 
of  Naval  Construction  Division  and  \<rith   the  same  amount  of  author- 
ity as  it  would  have  as  a  part  of  the  Ministry. 

Commander  in  Chief,  Navy  stated  first  and  foremost  that  discus- 
sion of  this  matter  implied  no  criticism  what  so  ever  of  Naval 
Construction  Division,  He  too  would  like  it  much  better  if  the 
Navy  were  able  to  carry  out  the  program  with  its  own  facilities 
without'  depending  on  outside  assistance,,  As  things  were  today, 
however,  in  the  fourth  year  of  the  war, '  it  was  obvious  that,  even 
if  equipped  as  Admiral  Fuchs  would  like,  the  Naval  Construction 
Division  could  not  be  as  effective  as  the  office  which  actually 
controls  the  availability  of  all  raw  materials,  capacity  and 
labor v  The  program  could  be  carried  out  only  with  Minister 
Speer  and  to  work  without  him  would  mean  to  work  against  him, 
if  legitimate  demands  made  by  Naval  Armaments  Division  should 
•be  refused.   The  war  had  decreed  necessary  a  break  with  the 
old  organization.  The  difficulties  before  us  today  did  not 
exist  in  1939 *  And  they  would  still  increase.  It  would  be  all 
the  more  important  to  have  applied  the  strongest  methods. 


-49-  CONFIDENTIAL 


CMFIDSNTIAL 
5  Jul.  1943  . 

Chief,  Naval  Construction  Division.  Supply  and  Finance 
Branch .  Rear  Admiral  Topp,  again  summed  up  the  demands  of  the 
delegates  of  the  Ministry,,  Ke  did  not  believe  that  a  compromise 
could  be  reached  nor  did  he  think  -  in  reply  to  a  question  from 
Commander  in  Chief,  Navy  -  that  the  Navy  would  be  able,  with  its 
own  facilities,  to  achieve  the  results  that  were  to  be  expected 
from  Minister  Speer.  According  to  the  Ministry1 s  delegates,  a 
similar  arrangement  regarding  armament  production  for  the  Army 
is  already  running  smoothly.  As  soon  as  the  matter  is  arranged 
•with  the  Navy  production  for  the  Air  Force  is  also  to  be  taken 
over  by  the  I  ministry.  Topp  could  not  help  feeling  that  this 
information  was  intended  to  bring  pressure  on  the  Navy*  In 
any  case,  it  must  be  admitted  that  the  Ministry's  functions 
would  be  vastly  increased  if  it  were  in  fact  to  work  too  inten- 
sively for  all  three  services,, 

Chief,  Naval  Staff,  Quartermaster  Division  was  doubtful 
whether  military  requirements  would  receive  due  consideration 
if  the  Navy  relinquished  the  preparation  of  designs.  He  was 
thinking  less  of  the  big  and  fundamental  general  problems  which 
were  undoubtedly  involved,  than  of  the  many  minor  needs  constant- 
ly arising  in  the  operational  zones  and  which  should  not  be  over- 
looked j, 

Chief,  Naval  Armaments  Division  reported  that  the  Ministry 
intended  to  disband  the  Underwater  Meapons  Commission  and  to 
allot  the  various  weapons  to  existing  commissions  acting  for  all 
three  Services,  as,  for  example,  those  for  ar.munition,  precision- 
tools  etc.  As  with  shipbuilding,  weapon  production  was  to  be 
taken  out  of  the  hands  of  the  Services  and  given  to  organizations 
independent  from  the  High  Commands.  The  Chiefs  of  the  various 
armament  sections  of  High  Command,  Navy  considered  this  intoler- 
able. After  other  consequences  which  would  arise  in  regard  to 
armament  supply  for  the  Navy  had  been  explained  -  all  technical 
inspectorates  and  experimental  detachments  would  have  to  be  ceded 
by  the  Navy  to  the  Ministry,  with  all  their  sea-borne  equipment  - 
Commander  in  Chief,  Navy  concurred  with  the  opinion  of  Chief, 
Naval  Armament  Division  that  such  an  arrangement  in  regard  to 
armament  production  was  out  of  the  question.  Nevertheless,  Com- 
mander in  Chief,  Navy  is  trying  to  find  a  way  in  which  Minister 
Speer' s  assistance  in  the  development  of  weapons  can  be  used 
more  effectively  than  heretofore. 

Vice  Admiral  v.d.  Borne  pointed  out  that. the  Armament  Division 
of  the  Army  still  existed. and  still  had  every  opportunity  of 
exerting  decisive  military  influence  by  the  examination  and  ap- 
proval of  the  production  designs  submitted  by  the  ministerial 
commissionse 


-50-  CONFIDENTIAL 


r 


CONFIDENTIAL 
5  Jul.  1943 

Furthermore,  Vice  Admiral  v.d.  Borne  held  the  view  that  the  ex- 
tensive requests  made  by  the  civilian  office "on  3  Jul.  should 
not  be  regarded  as  the  Ministry's  last  word.  They  were,  per- 
haps, rather  an  attempt  to  establish  how  far  the  Navy  was  dis- 
posed to  go  towards  accepting  the  Ministry's  desire  for  power. 
Minister  Speer  would  undoubtedly  be  ready  to  listen  to  the 
very  important  arguments  of  the  military  authorities.   Besides 
the  objections  already  mentioned,  it  should  also  be  pointed  out 
that  difficulties  would  arise  in  regard  to  the  repair  and  sup- 
ply organizations  which  cannot  be  separated  from  the  building 
yards  and  the  production  works.  It  is  self-evident  that  these 
can  only  be  handled  by  military  authorities. 

Naval  Contraction  Division  III  R.  Commander  Ritter  von  Georg, 
was  of  the  opinion  that  the  only  thing  to  do  was  to  cede  pro- 
duction to  Minister  Speer.   But  the  Commission  must  be  headed 
by  a  naval  officer.   In  the  present  serious  situation,  the  dis- 
solution of  the  Naval  Construction  Division  was  unjustified 
especially  since  it  could  not  be  guaranteed  that  Speer' s  out 
put  would  actually  be  better  than  that  of  Haval  Construction 
Division. 

Chief.  Naval  Staff,  Operations  Division  experienced  confidence 
in  Speer 's  efficiency  but,  on  the  other  hand,  considered  that 
dissolution  of  offices  of  Armed  Forces  High  Command  was  entirely 
intolerable  and  that  an  amalgamation  along  the  lines  of  the  state- 
ment of  Chief,  Naval  Armaments  Division  was  necessary. 

Chief  of  Staff,  Commander  in  Chief.  Navy  stated  that  no  one 
could  shoulder  the  responsibility  of  Commander  in  Chief,  Navy 
for  the  success  or  failure  of  the  1943  naval  program.  He  re- 
garded it  as  most  dangerous  to  break  up  High  Command,  Navy's 
own  organization  at  this  time  and  also  unnecessary  since  only 
the  production  side  of  the  1943  program  was  still  to  be  done, 
all  designing  having  been  already  completed  by  Naval  Construc- 
tion Division„ 

Commander  in  Chief,  Navy  interposed  that  the  design  work  for 
the  submarine  type  XXI  had  not  yet  been  completed  and  would 
thus  fall  to  the  commission.  Otherwise,  he  said,  Rear  Ad- 
miral Schultc  Hoenting  was  right  on  this  point. 

Chief,  IJaval  Staff,  who  was  present  only  during  the  statement 
of  Chief  of  Staff  of  Commander  in  Chief,  Navy,  concurred  with 
the  latter 's  views.  He  thought  that  Minister  Speer  was  not  in 
a  position  to  realize  all  the  issues  involved  in  a  program  of 
warship  construction  in  general  and  in  this  unusually  large  one 
in  particularo 


•51~  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943 

Chief,  Naval  Staff,  Operations  Division,  Operations  Branch  com- 
mented that  declarations  had  been  received  from  representatives 
of  important  civilian  building  yards  to  the  effect  that  con- 
struction of  a  warship  without  Naval  Construction  Division  was 
utterly  impossible. 

Command er  in  Chief,  Navy  closed  the  conference,  again  pointing 
out  the  constraint  of  our  position  and  the  need  to  take  the 
road  which  would  lead  most  surely  and  directly  to  the  objec- 
tive. In  the  present  case,  that  undoubtedly  meant  working  with 
Speer.   The  Minister  did  not  yet  entirely  realize  the  difficul- 
ties of  a  big  warship  program,,   But  Commander  in  Chief,  Navy 
would  have  to  make  clear  to  him  that  the  construction  work  was 
his  business  but  the  preparation  of  designs  was  the  business  of 
the  Navy  -  which  would  obviously  welcome  his  assistance  and  was 
prepared  to  establish  ties  of  organization  to  make  this  assis- 
tance effective.  Out  attitude  must  not  be  such  as  to  cause  Speer 
to  refuse  to  accept  the  naval  program.   Both  sides  must  make 
concessions. 

In  the  afternoon,  the  conference  between  High  Command,  Navy  and 
the  Reich  Ministry  for  Armament  and  Munitions  on  the  subject  as 
under  III.  continued  under  the  chairmanship  of  Commander  in 
Chief,  Navy  and  the  Reich  Minister. 

A  report  on  the  conference  and  its  results  will  follow. 
Situation  on  5  Jul.  1943: 

I.    War  in  Foreign  Waters: 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Ov/n  Situation: 

No  reports  have  been  received  from  our  vessels. 

With' regard  to  the  repatriation  of  certain  persons  from  East  ■ 

Asia,  Naval  At cache  Tokyo  was  informed,  in  reply  to  a  request, 

that  it  is  more  urgent  to  bring  home  naval  officers  than  the 

DNB  representative  who,  however,  would  be  of  value.  Naval  Staff 

suggests  that  naval  officers  and  the  DNB  agent  be  repatriated 
on  ''Brake  "  and  a  combat  submarine  or  anAQUILi.  in  order*  to  avoid 

the  greater  risk  involved  on  a  blockade -runner.  For  copy  of 

order  l/Skl  I  k  18326/43  Gkdos  see  War  Diary,  Part  C,  Vol.  I. 

Naval  Staff  informed  Ship  "28"  by  radiogram  2133  that  torpedo 
supplies  for  PT  boats  had  meantime  been  shipped  on  Aquila 
submarines.  The  CHARLOTTE  SCHLIEMANN  was  informed  by  radio- 
gram 1736  that  Naval  Attache  Tokyo  has  reported  that  she  will 
make  for  Lilie  via  Gclb  Caesar. 

-52-  CONFIDENTIAL 


r 


CONFIDENTIAL 
5  Jul.  1943 

A  letter  to  High  Command,  Armed  Forces/Foreign  Amies  III, 
Naval  Staff  quartermaster  Division,  Shipping  and  Transport 
Branch,  Shipping  Section  (Tr.N.:  Qu  A  I  S  apparently  should 
read  Qu  A  V  I  S  because  IS  =  PT  boat  Section  gives  no  sence  in 
this  connection)  measures  for  blockade-runners  l/Skl  I  k 
19034/43  Gkdos  discusses  the  question  of  removing  the  top  masts 
of  the  blockade-runners  following  the  objections  raised  at 
Tokyo.  For  copy,  see  War  Diary,  Part  C,  Vol.  I0 

II o   Situation  West  Area: 

le    Enemy  Situation: 

Forty-two  planes  were  observed  operating  in  the  Bay  ' 
of  Biscay.  One  British  ship  was  located  200  miles  west  of  Brest, 
at  2049,  and  one  660  miles  west-northwest  of  Cape  Villano  at 
0020  on  7  Jul*   The  steamer  BALTIC,  which  was  taken  into  Gibral- 
tar, was  captured  on  24  Jun«,  shortly  before  leaving  the  outer 
harbor  at  Bilbao,  by  a  boat  with  6  men  under  a  French  Commander 
vfrkfa.  came  alongside  unobservedo 

2.    Own  Situation: 

■fiv/lantic  Coast: 

Submarine  U  "462"  was  met  by  our  torpedo  boats. 
Her  close  air  escort  reported  her  position  at  0811  in  BF  8571. 

Destroyers  Z  "24"  and  "37"  moved  from  Royan  to  Pauillac, 

Channel  Coast: 

While  enroute  from  Dunkirk  to  Boulogne  the  4th  Tor—  ' 
pedo  Boat  Flotilla  was  bombarded  by  British  long-range  batteries, 
and  the  torpedo  boat  T  "24"  was  slightly  damaged  by  shell  frag- 
ments.  For  the  short  report  see  Teletype  0010/06,   In  reply 
batteries  "Todt"  and  "Lindemann"  fired  3  rounds  each  between 
0257  and  0322  and  batteries  702,  710  and  713  fired  15  rounds 
each  on  targets  in  harbors  on  the  English  coast,, 

Nothing  special  to  report  on  the  escort  and  patrol  services. 

Ill , North  Seat  Norway.  Northern  Waters : 

North  Sea: 

At  0915,  a  Dutch  fishing  snack  was  sunk  off  Egmont  aan  Zee 
apparently  by  striking  a  mine.  Otherwise  the  convoy  and  patrol 
activities  in,  the  area  of  Commanding  Admiral,  Defenses  North 
were  carried  out  without  incident „ 

-53-  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943 

Norway,  Northern  Waters; 

1,    Enemy  Situation: 

Seventeen  planes  were  observed  operating  in  the  North 
Sea.  Strong  radio  traffic  with  Russian  submarines  was  observed 
off  the  Arctic  coast.  Our  air  reconnaissance  produced  no  par- 
ticular information. 

2e    Own  Situation: 

At  2305  on  4  Jul.,  the  two  harbor-guard  ships  off 
Vardoe  were  unsuccessfully  attacked  by   a  torpedo  from  an  enemy 
submarine.  At  0610,  on  5  Jul.,  a  Russian  M-class  submarine  un- 
successfully attacked  2  submarine  chasers  of  the  12th.  Anti- 
submarine Flotilla  north  of' Vardoe  and  was  subsequently  def in-  ( 
itely  sunk  by  depth  charges,  gunfire  and  ramming 0 

One  Russian  anti-submarine  lead-horned  mine  was  cut  south  of 
Arnoey  and  convoy  traffic  was  stopped0 

At  2200  on  4  Jul.*,  one  of  our  eastbound  convoys  was  attacked  by 

5  Hampdons  xvith  3  fighters  south  of  Ekkerocy.  It  was  observed 
that  three  unsuccessful  aerial  torpedoes  were  fired.  Near  Molde, 

6  enemy  planes  firing  upon  one  of  our  southbound  convoys  were 
driven  off  by  gunfire.  Naval  anti-aircraft  artillery  fire  shot 
down  one  enemy  plane  and  fighters  brought  down  another  plane  dur- 
ing a  bombing  attack  on  a  wreck  southwest  of  Kristiansund  North 0 
Forty-one  ships  were  escorted  to  the  north  and  24  ships  to  the 
south.  Twelve  ships  were  unable  to  proceed  due  to  lack  of  escort. 

IV «,   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea:  t 

1*    Enemy  Situation: 

Shipping  movements  in  Kronstadt  Bay  were  much  the 
same  as  in  previous  days* 

2C    Own  Situation: 

At  0400  on  4  Jul.,  the  steamer  DUISBURG  was  damaged 
in  Aalborg  by  a  demolition  charge,.   Escort  and  patrol  service  in 
the  area  of  Commanding  Admiral,  Defenses  Baltic  were  carried  out 
without  incident. 

Four  troop  transports,  3  leave  transports  and  4  other  steamers 
were  escorted  in  the  Baltic  Sea  area*, 


-54- 


CONFIDENTIAL 
5  Jul.  1943 

No  special  reports  were  received  from  the  area  of  Commander  Mine- 
sweepers,  East. 

Naval  Command,  Baltic  advised  Naval  Staff  for  information  that 
5th  Air  Force  had  replied  in  the  negative-  to  the  request  for 
regular  reconnaissance  flights.  For  copy,  see  teletype  1122„ 
Although  5th  Air  Forces'  reasons  are  only  partially  acceptable 
Naval  Command  will  refrain  from  submitting  the  matter  to  the 
Air  Minister  and  to  Commander  in  Chief,  Air  Force  in  view  of  the 
situation  in  regard  to  fuel  and  forces,, 

Naval  Staff  considers  that  the  demand  for  reconnaissance 
should  be  maintained  on  principles 

Naval  Command  Baltic,  Operations  Staff  has  requested  a  decision 
on  its  proposal  that  5th  Minesweeper  Group  (planes)  be  reinforced 
so  that  prescribed  routes  may  be  frequently  checked.  The  planes 
are  under  the  operational  command  of  Commanding-  Admiral,  Defenses 
Baltic,  Admiral,  Denmark,  and  Coastal  Defenses,  Commanders,  West 
and  Pommerania  will  be  entitled  to  use  the  planes  for  their  own 
operations o   (See  teletype  2018) ^  . 

Because  of  the  shortage  of  ammunition  for  Naval  Staff,  Quarter- 
master Division  the  captured  batteries,  in  accordance  with  the. 
decision  of  Commander  in  Chief,  Navy,  that  12-10.5  cm  Sk  C/32 
guns  should  be  made  available  for  reinforcement  of  the  coastal 
defenses  in  Kronstadt  Ray  and  set  up  in  3  batteries  of  4  guns 
each.  The  12  guns  will  have  to  be  taken  from  the  stock  provided 
for  rearmament  of  the  batteries  in  the  West  area;  this  will  leave 
only  4  batteries  of  4  guns  each  in  stocka 

Commanding  Admiral,  Baltic  Countries  intends  to  instal  2  of  the 
batteries  in  the  Peterhof/Uritzk  area  and  1  at  Tytters  as  a  re- 
placement for  Battery  Nettelbeck  (two  10*5  cm  Polish  guns.)3 

Naval  Staff  has  no  objections,, 

V*         Merchant  Shipping: 

The  Reich  Commissioner  of  Maritime  Shipping  estimates  ship- 
ments during  July  as   follows: 

Norway  supplies  470>000  tons 

Finland  supplies  97,000  tons 

Baltic  Countries  Supplies  212,000  tons 
German  coastal  traffic  excl0   coal     40,000  tons 
Coastal  coal  traffic  221,000  tons  of  which 

from  Rotterdam  20,000  tons 

Ore  shipments  from  Luloa     700,000  tons 
Ore  shipments  from  OxeloT sound     100,000  tons 

-55-  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943 

Altogether  this  gives  an  increase  of  58,000  tons  as  compared 
with  Jun.  of  this  year* 

VI.  Submarine  Warf are : 

1 •    Enemy  Situation : 

Nothin-  to  report. 

2.    Own  Situation: 

Submarine  U  "669"  sighted  1  battleship  and  4  destroy- 
ers at  high  speed  on  course  55°   in  BD  6319« 

An  auxiliary  sailing  freighter  was  sunk  and  a  4,000  ton  steamer 
probably  sunk  off  the  Brazilian  coast. 

On  4  Jul„,  submarine  U  "178"  sank  one  Norwegina  and  one  Greek 
steamer  for  a  total  of  7,443  BRT  in  KE  7471  off  the  east  coast 
of  Africa 0 

For  successes  in  the  Mediterranean,  see  Own  Situation  in  the 
Mediterranean0 

VII.  Aerial  Warfare: 

British  Isles  and  Vicinity : 

The  3rd  Air  Force  had  84  planes  in  operation  in  the  West 
Area  and  4  in  the  Mediterranean. 

Throughout  the  day,  the  enemy  was  in  operation  against  traffic 
installations,  radar  stations  and  airfields  in  the  occupied 
territoriesc   Fifteen  of  our  fighters  made  no  contact  with  the 
enemy o  A  total  of  83  incursions  into  German  controlled  terri- 
tory were  reported  during  the  night  of  5  Jul*  Aerial  mine-laying 
was  observed  off  Brest  and  suspected  in  the  waters  Tershelling  - 
Borkunio  Naval  anti-aircraft  guns  and  night-fighters  shot  down 
one  enemy  plane  each. 

During  the  night  of  3  Jul.,  Me  109  planes  were  employed  on  night 
fighting  for  the  first  time  with  good  results, 

Mediterranean  Theater; 

Our  Air  Force  continued  reconnaissance  flights.  Sometimes 
heavy  enemy  air  attacks  wore  made  on  airfields  and  villages  in 
Sicily.  For  details,  sec  Daily  Situation.  Twenty-two  planes  have 
so  far  been  reported  shot  down. 

-56-  CONFIDENT!;  J, 


-y.j 


r 


confidential 

5  Jul.  1943 

For  the  night  of  5  Jul.,  it  is  planned  to  send  a  strong  German 
bomber  formation  against  Bizerta. 

Eastern  Front: 

On  4  Jul0,  47  enemy  planes  were  shot  do wn  on  the  <irmy  front 
with  a  loss  of  4  of  our  own. 

In  connection  with  operation  "Citadelle",  the  6th  and  4th  Air 
Forces  flew  4570  missions,  during  which  432  enemy  planes  were 
brought  down  at  a  loss  of  26  of  our  own0 

Although  these  figures  are  most  satisfactory  they 
also  reveal  the  very  considerable  strength  of  the 
enemy's  operations. 

VIII o  Warfare  in  the  Mediterranean  and  Black  Scat 

I*    Enemy  Situation  in  the  Mediterranean; 

At  0715,  both  KING  GEORGE  V-class  battleships  left 
Gibraltar  towards  the  east  together  with  5  destroyers.  Thus  all 

6  battleships  and  both  aircraft  carriers  are  in  the  Western  Med- 
iterranean, Photographic  reconnaissance  at  1600  on  5  Jul,  con- 
firmed the  presence  of  2  battleships,  1  carrier,  4  cruisers  and 
2  destroyers  at  liers  el  Kebir0 

No  reports  have  been  received  on  the  other  vessels 0 

During  the  day,  4  steamers  coming  from  the  Mediterranean  and  6 
steamers  with  2  escort  units  each  coming  from  the  Atlantic  entered 
Gibraltar  and  1  net-layer  and  1  destroyer  loft  the  harbor  for  an 
unknown  destination. 

At  1730  on  4  Jul,,  our  air  reconnaissance  observed  north  of  Oran 
the  westbound  convoy  of  36  steamers  which  had  been  reported  at 
Tenes  in  the  forenoon  and,  at  1530,  noted  4  eastbound  steamers 
south-southeast  of  Cape  de  Gata,  The  two  big  convoys  which 
entered  the  Mediterranean  during  the  night  of  3  Jul,  were  not 
sighted  by  our  air  reconnaissance.  One  of  the  convoys  was  at- 
tacked by  one  of  our  submarines  at  1543  55  miles  east-northeast 
of  .J.gierso 

According  to  air  reconnaissance  at  noon,  2  big  warships  were  50 
miles  northeast  of  Bougie  making  for  port  and,  at  1930,  a  convoy 
of  15  steamers  with  several  destroyers  was  10  miles  north  of 
Bougie.  The  convoy  included  5  very  big  steamers  (20,000  BRT  each). 


-57-  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943 

Air  reconnaissance  also  reported  15  merchantmen  east  of  Hammamet 
at  0230,  4  probably  PT  beats  northeast  of  Pantelleria  at  0430,  9 
vessels  on  a  northwesterly  course  north  of  Cape  Bon  at  0945  and 
4  eastbound  destroyers  at  1400« 

Further  photographic  reconnaissance  of  tiers  cl  Kebir,  Oran,  iirzeu, 
Lijelli  and  Bougie  revealed  a  further  considerable  reduction  in 
the  number  of  landing  vessels,  probably  duo  to  movements  to  the 
east. 

On  the  evening  of  4  Jule  one  submarine  was.  reported  west  of 
Pantelleria,  and  on  5  Jul.  one  near  Olbia,  one  off  Leghorn  and 
in  the  afternoon,  one  each  off  Catania  and  Elba, 

2a    Own  Situation  Mediterranean: 

No  reports  have  been  received  on  the  operations  of 
our  PT  boats. 

,.t  1543,  submarine  U  "593"  sank  a  ship  of  8,000  BRT  from  an 
eastbound  convoy  in  CH  9544  with  a  Pi  2;  submarine  U  "371"  re- 
ported on  her  success  of  4  Jul©  that  during  the  night  she  sighted 
remains  of  the  torpedoed  freighter  burning  and  abandoned  and  ob- 
served 2  explosions. 

Escort  service  was  carried  out  by  our  defense  forces  without  in- 
cident. For  the  battle  report  of  submarine  chaser  n2207" 
on  the  torpedoing  of  the  steamer  SaBBL*  see  teletype  2200.  At- 
tention is  called  to  the  unsatisfactory  range  of  the  echo-ranging 
sets  in  coastal  waters. 

German  Naval  Command  has  reported  on  the  status  of  the  barrages  \ 

laid  by  BRANDENBURG  and  POMMERN  on  3  Jul.  For  copy,  see  tele- 
type 1855c  TATiile  carrying  out  the  task,  the  formation  was  iden- 
tified and  reported  by  enemy  reconnaissance  planes  as  1  destroyer 
with  2  merchantmen.; 

Special  Items: 

a0    Transfer  of  Ships  to  the  ^egcan: 

Naval  Staff,  Quartermaster  Division,  Shipping  and 
Transport  Branch  informed  Naval  Staff,  Operations  Division  on  a 
report  from  the  Reich  Commissioner  of  Maritime  Shipping,  Deputy 
for  German  Sea  Grans port at ion  in  the  Mediterranean  to  the  offices 
concerned  at  Armed  Forces,  High  Command,  Operations  Staff;  High 
Command,  Navy;  Naval  Staff,  Quartermaster  Division,  Shipping  and 

-58-  CONFIDENTLY 


CONFIDENTIAL 
5  Jul.  1943 

Transport  Branch,  with  copy  to  German  Naval  Command  Italy,  Chief 
Supply  and  Transport,  Italy  and  Mediterranean  Shipping  Company, 
Rome0  The  report  discusses  the  status  of  ship  transfers  from  the 
Central-  Mediterranean  to  the  negean,  the  order  of  Commanding 
General,  South  that  ships  already  partially  loaded  for  Sicily 
and  Sardinia  be  unloaded  and  transferred  during  the  present  new 
moon  period,  and  the  negotiations  with  German  Naval  Command,  Italy 
on  the  matter  of  escorts.  Naval  Staff,  Quartermaster  Division, 
Shipping  and  Transport  Branch  considers  that  -  once  a  transfer 
is  ordered  -  Commanding  General  South,  Chief,  Supply  and  Transport 
Italy  and  German  Naval  Command  should  cooperate  closely  in  doing 
everything  to  assure  its  fulfilment  and  recommends  that  Naval 
Staff,  Operations  Division  should  instruct  German  Naval  Command 
accordingly.  For  copy  of  the  letter  of  Naval  Staff,  Quartermaster 
Division,  Shipping  and  Transport  Branch  as  per  l/Skl  19070/43 
Gkdos,  see  War  Diary,  Part  C,  Vol..  XI 0 

d«    Delay  in  Adriatic  -  Aegean  Traffic: 

The  Reich  Commissioner  of  Maritime  Shipping,  Deputy 
for  German  Sea  Transportation  in  Mediter  anean  has  requested  that 
German  Naval  Liaison  Officers  to  the  Italian  Navy  should  be  ap- 
pointed at  Valona,  Durazzo  and  Prevesa  as  at  CorfuQ  The  requested 
views  of  German  Naval  Command  Italy,  Group  South  and  of  Admiral 
uegean  (see  War  Diary  4  Jul.)  should  also  include  this  problem. 

Meanwhile,  the  views  of  Chief,  Supply  and  Transport,  Italy  and  of 
Group  South,  and  a  preliminary  report  from  German  Naval  Command, 
Italy  have  been  reccived0  For  copy  as  perl/Ski  19068,  19112  and 
19109/43  Gkdos 0   see  War  Diary,  Part  C,  Vol.  XL. 

German  Naval  Command  reports  that  the  hold-up  of  steamers  is  due 
to  the  Italian  troop-transport  convoys  for  which  strong  escort 
has  to  be  provided  and  that  2  steamers  left  Bari  for  Greece  on 
3  Jul. 

Group  South,  in  its  statement,  reaches  the  conclusion  that  the 
worsening  of  the  situation  and  the  defects  in  the  Italian  NavyTs 
handling  of  the  supply  traffic  in  the  Adriatic  -  Corfu  -  Aegean 
sector  underline  the  need  for  a  centralized  control  for  the  whole 
Aegean  area  including  the  west  coast.   The  Group  suggests  that 
the  possibility  be  explored  of  obtaining  the  Italian  Navy's  con- 
sent to  extending  Commanding  Admiral,  Aegean's  control  to  in- 
clude the  Western  Greece  area  as  far  as  the  Straits  of  Otranto,, 

Group  South  further  advised  Naval  Staff,  for  information  that 
Coot,  nding  General  Southeast  had  nox^r  also  intervened  in  the  matter 
cf  exo<jditing  ^cgean  supplies  and  that  on  6  Jul.,  in  Rome  he  would 


-59-  confidential 


CCI'FIDEIITLJ, 
5  Jul.  1943 

personnally  demand  the  faster  dispatch  of  ships  in  Italian 
harbors.   For  copy  Of  the  corresponding  teletype  l/Skl  19111/43 
Gkdos  see  War  Diary,  Part  C,  Vol,  XI. 

Naval'  Staff  has  advised  Armed  Forces,  High  Command,  Operations 
Staff,  Navy  of  the  statement  of  Chief,  Supply  and  Transport, 
Italy  and  lias  promised  to  report  its  own  views  after  consulta- 
tion with  Command ing  Admiral,  German  Naval  Command,  Italy „ 

c,    .i  Report  from  German  Naval  attache,  Rome: 

A  report  from  German  Naval  attache,  Rome  on  a  confer- 
ence with  admiral  Giartosio  on  1  Jul.  indicates  that  the  advice 
given  by  Commander  in  Chief,  Navy  during  his  visit  to  Rome  on  the 
efficient  organization  of  coastal  defenses  in  Sardinia  has  had 
positive  and  practical  results  with  the  Italian  Naval  Staff.  For 
copy  of  the  report  as  per  l/Skl  1913/43  Gkdos,  Chefs „  see  War 
Diary,  Part  C,  Vol0  XIII. 

3.,    Sea  Trans  cert  Situation; 

Supply  traffic  to  the  islands  was  carried  out  accord- 
ing to  schedule;,  Enroute  from  Bastia  to  Leghorn,  a  convoy  was 
unsuccessfully  attacked  by  a  submarine  with  two  torpedoes, 

4o    Area  Naval  Group  South: 

Aegean: 

Enemy  Situation: 

according  to  reports  from  Groua  South,  an  enemy 
submarine  put  in  to  the  harbor  of  Livadia  on  the  island  of  Scrifos, 
which  is  occupied  by  the  Italian  Navy,  from  2330  to  at  least  0315 
on  the  night  of  4  Jul,  No  details  or,  more  especially,  reports 
of  Italian  counter-actions  have  been  received  from  the  Italians. 

Router  reports  that  British  landing  detachments  attacked  air- 
fields in  Crete  during  the  night  of  4  Jul*  Detailed  circum- 
stances are  still  unknovne. 

For  the  first  time,  Commanding  General  South  East,  reports 
rebel  activities  in  Euboea, 

Own  Situation: 

In  the  afternoon  of  4  Jul.,  the  3ULGARXA  discovered 
an  unknown  minefield  45  miles  southeast  of  Salonika.  The  neces- 
sary steps  have  been  ordered, 

-60-  CONFIDHaTLiL 


CONFIDENTIAL 
5  Jul.  1943 

GA  "42" ("Q"  ship)  and  one  submrine  chaser  were  sent  to  Serifos. 

Air  reconnaissance  by  3  Ju  88  planes  in  the  waters  T..Test  of  Creta, 
Southwest  of  the  Pcloponnese  and  on  the  west  coast  of  Greece  pro- 
duced no  information© 

The  movements  of  our  own  forces  were  carried  out  according  to 
plan0 

In  regard  to  the  salvage  of  the  steamer  VESTA  torpedoes  near  Syra, 
it  is  reported  that  submarine  chaser  "2104"  manned  the  steamer 
and  got  up  steam  with  her  own  crew  as  all  the  Italian  crew  except 
the  officers  had  left  the  shipc 

Group  South  has  requested  the  first  degree  of  priority  for  mine 
supplies  for  the  Aegean  mining  plan.   The  plan  will  be  sent  by 
courier o 

At  present,  the  Aegean  mining  and  barrage  tasks  have  first  de- 
gree priority  within  the  general  program.  The  request  can  be 
filled  by  using  the  remaining  reserves  or  the  Jul0  production 
minus  970  UMB-mines  already  allotted  for  the  Bonifacio  Strait 
it  will  therefore  not  be  possible  to  deliver  UMB-mines  to  ad- 
miral aegean  until  the  August  production  is  ready 0 

Directives  to  this  effect  have  been  sent  to  Group  South  and  to 
Underwater  Obstacles  Branch 0 

Black  Sea: 

Enemy  Situation: 

At  0012,  off  Anapa,  two  boats  were  seen  which  put  up 
smoke  screens  and  made  off  when  fired  upon. 

Own  Situation: 

•  No  special  incidents  have  been  reported,,  For  the 
first  tine,  6  naval  landing  craft  took  up  patrol  positions  off 
the  northern  exit  of  the  Kerch  Straits 0 

Naval  artillery  lighters  "5"  -  "8"  put  in  to  Yalta  owing  to  bad 
weather*  They  will  move  to  Temriuk  via  Kerch  on  6  Jul,  for  of- 
fensive operations  and  defense  service  in  the  Azov  Sea,   Naval 
artillery  lighter  "4"  will  move  to  Mariupol  in  order  to  reinforce 
the  group  there, 

IX,   Situation  in  East  asia: 

-61-  CONFIDENTIAL 


CONFIDENTIAL 
5  Jul.  1943 

Exchange  Telegraph  reports  on  the  situation  in  New  Guinea: 

"The  Allied  Air  Forces  have  almost  complete  control  of  the  air. 
At  MacArthur's  Headquarters  it  is  estimated  that  it  will  take 
about  three  weeks  to  capture  Munda,  the  main  Japanese  stronghold 
in  the  New  Georgias0  The  fleet  operations  in  the  Solomons  area 
were  carried  out  by  the  7th  U.S.  Fleet  under  command  of  Vice  Ad- 
miral Carpender0 


6  Jul.  1943 

Items  of  Political  Importance : 

Foreign  Affairs ,  Intelligence  Division  has  made  a  study  of  rela- 
tions between  Japan  and  the  Soviet  Union  and  the  relations  of 
each  of  these  countries  with  the  USA,  in  the  course  of  which  a 
great  deal  of  often  strongly  contradictory  information,  dating 
back  to  the  end  of  Dec.  1942,  has  been  evaluated  and  the  follow- 
ing conclusions  reached: 

By  her  victories,  Japan  has  made  it  almost  completely  impossible 
for  the  enemy  to  attack  her  home  islands  from  the  sea,  There- 
fore, the  Japanese  home  land  can  be  effectively  attacked  only 
from  China  or  Russian  East  Asia,,  U.  S.  attempts  to  get  bases 
from  Stalin  for  the  purpose  of  making  air  attacks  have  so  far 
been  unsuccessful 0     But  Japan  must  undoubtedly  count  on  a  com- 
bined attack  by  the  Soviet  Union  and  the  U.  S.  from  Siberia  as 
soon  as  the  Soviet  Union's  position  in  the  west  is  sufficiently 
easedo 

Japan's  relations  with  the  Soviet  Union  are  governed  by  the  neu- 
trality agreements  Russia  sticks  to  this  agreement  because  she 
does  not  want  American  supplies  to  Siberia  to  be  cut  off,  which 
would  be  unavoidable  in  case  of  war  with  Japan,  and  because  she 
wants  to  avoid  a  war  on  two  fronts  as  long  as  she  is  still  tied 
down  on  her  western  frontier, 

Considering  her  war  commitments,  particularly  in  China,  Japan 
could  wage  a  preventive  war  against  Russia  only  if  she  were  cer- 
tain of  being  able  to  achieve  a  quick  victory  without  endangering 
her  campaigns  in  the  other  war  theatres 0 

Politically,  this  also  appears  to  ensure  a  balance  in  East  Asia 
since,  in  respect  to  the  increasing  power  of  the  USA  in  the  Paci- 
fic, it  would  not  be  in  the  Russian  interest  for  Japan  to  be  com- 
pletely powerless,, 


-62-  CONFIDENTLY 


CONFIDENTIAL 
6  Jul.  1943 

In  this  connection,  it  is  noteworthy  that  recently,  Moscow- 
has  again  been  calling  for  the  establishment  of  a  second  front 
in  Europe.  A  Pravda  leading  article  which  can  always  be  re- 
garded as  semi-official,  has  pointed  out  that  everything  de- 
pends on  how  Russia's  allies  exploit  the  favorable  situation 
created  after  Stalingrad  and  Tunis  for  the  purpose  of  estab- 
lishing a  second  front  on  the  European  continent,  since  with- 
out a  second  front,  victory  over  Germany  is  impossible c 

On  the  other  hand,  there  are  indications  that  the  Anglo— Ameri- 
cans are  in  no  hurry  to  fulfil  the  Russian  wish.  This  reluctance 
may  be  due  to  military  reasons  of  various  kinds.  But  without 
doubt  there  must  also  be  political  motives  involved0  This  also 
makes  it  possible  for  us  to  take  advantage  of  this  tendency 
since,  in  our  situation,  time  is  in  our  favor,,  In  any  case,  the 
enforced  pause  in  the  battle  of  the  Atlantic  may  help  to  increase 
the  latent  Anglo-American  -  Russian  tension  if  it  is  true  that 
this  success  has  served  to  strengthen  the  position  of  the  Anglo 
Americans  in  the  coalition  of  our  enemies  and  make  them  less  de- 
pendent on  the  requirements  of  their  Russian  ally„ 

Conference  with  Chief,  Naval  Staff : 

A«    Report  by  Bureau  of  Naval  Armament,  Torpedo  Branch 
on  the  status  of  torpedo  production: 

A  monthly  output  from  1  Jul.  of  200  u Zaunkoenig"  •  type  torpedoes 
is  assured  in  spite  of  considerable  difficulties,  especially  in 
regard  to  personnel  (shortage  of  engineers).  Seventy-five  tor- 
pedoes will  be  delivered  for  trial  within  the  next  days.  It  is 
expected  that  250  torpedoes  per  month  will  be  produced  as  from 
August  and  400  as  from  January  1944»  Completion  of  the  measure 
tank  which  would  eliminate  ranging  is  a  decisive  factor,  Com- 
mander in  Chief,  Navy  has  been  requested  to  approach  Minister 
Spoor  in  regard  to  filling  200  engineer  positions.  Torpedo 
Branch  considered  the  risk  of  serial  production  to  be  negligible « 
It  is  planned  to  establish  three  bases. 

Commander  in  Chief,  Navy  .also  asked  for  Spcer's  assistance  in 
the  production,  which  must  be  considerably  expedited  so  that  the 
submarines  can  operate  with  Zaunkoenig  torpedoes  by  the  end  of 
August*  The  number  of  bases  is  to  be  increased  to  six.  The  con- 
struction of  measure  tanks  is  to  be  speeded  up  in  every  way. 

Torpedo  Branch  also  reported  that  test  firing  has  demonstrated 
the  usefulness  of  Fat  3  torpedose  One  hundred  torpedoes  of  this 
type  will  be  available  in  Oct.,  200  in  Nov.,  and  440  in  Jan„  The 
bottleneck  is  in  the  supply  of  angle  adjusters,. 


-63-  CONFIDENTIAL 


CONFIDENTLY 
6  Jul.  1943 

CoranE.nder  in  Chief,  Navy  requires  that  the  Fat  3  and  Zaunkoenig 
torpedoes  be  used  together  for  the  resumption  of  the  submarine 
campaign.   It  is  therefore  a  matter  of  the  utmost  importance, 

B0     Report  by  Naval  Staff.  Quartermaster  Division,  Sub 
marine  Section: 

a„    Conning  towers  conversion: 

By  10  Aug.,  78  conning  towers  will  have  been 
delivered  for  the  74  submarines  in  dock.  The  delay  in  the  dock- 
ing period  is  only  slighto  Reconstruction  of  boats  in  the  West 
area  will  not  be  affected  by  deliveries  to  the  yards  at  home* 

In  view  of  this  favorable  situation,  Chief,  ilaval  Staff  has  de- 
cided that  2  more  boats  (without  converted  conning  towers)  are 
to  be  placed  immediately  at  the  disposal  of  Commander,  Submarines 
Norway  by  Commanding  Admiral,  Submarines  through  Group  North  Fleetc 
(For  order  l/Skl  19152/43  Gkdos  see  War  Diary,  Part  C,  Vol.  Ila* 

b .    Italian  80-ton  Submarines : 

Examination  of  the  construction  projects  sub- 
mitted by  the  Italian  Commanding  Admiral  Submarines  shoxv  that 
this  boat  is  a  very  useful  type  for  Hediterranean  operations 0 
The  question  of  furnishing  German  engines  is  still  under  consid- 
eration.  It  is  not  possible  to  furnish  telescopes  as  requested, 
as  our  production  capacity  is  already  fully  engaged 0 

Chief,  Naval  Staff  decided  that  the  project  should  be  recommended 
and  given  every  moral  support „  But  Italian  participation  in  the 
Walter  Submarine  project  could  not  be  contamplated  due  to  the 
generally  unsettled  situation0 

The  suggestion  that  2  more  large  transport  submarines  should  be 
built  in  Kanfalcone  and  the  plates  for  the  pressure  hulls  delivered 
from  Germany  should  be  followed  up, 

C.     Conference  on  the  Situation: 

1  ?    Chief  JMaval  Staffs  OjDcraticns  Division^  Ogcra- 

tions  Branch:  In  regard  to  the  renewed  request  of  German  Naval 
Command,  Italy  for  the  allotment  of  4  motor  minesweepers  (see 
War  Diary  4  Jul.),  Naval  Staff  de.cided  that  for  the  reasons  al- 
ready explained,  it  is  not  possible  for  the  next  3  boats  of  12th 

^otoirvMinesw&eper-'Flotilla'-and  of  ::iotor  minesweeper  R  "38"  to  b*e 
temporarily  assigned  to  mine  operations  on  the  Sicilian  coast. 


-64-  CONFIDENTIAL 


CONFIDENTIAL 
6  Jul.  1943 

Motor  minesweeper  R  "38"  and  "211",  and  the  R  "178  and  "188" 
\^ich  will  be  ready  shortly,  are  to  be  transferred  to  the 
Aegean  as  planned „  Whether  the  4  remaining  boats  of  12th 
Motor  minesweeper  Flotilla  which  will  become  ready  on  15  Jul. 
and  22  Jul.  can  be  made  available  for  one  or  two  weeks  of  oper- 
ation in  the  Sicilian  area  will  be  decided  in  accordance  with 
the  situation  at  the  time.  Developments  in  the  Aegean  may 
necessitate  additional  transfers  of  our  naval  forces  from  the 
Italian  area  to  the  Aegean.   Orders  for  such  movements  may  be 
expected  at  any  time  although  the  Italians  are  not  to  be  ad- 
vised of  this  yet. 

II.   Report  by  Chief,  Naval  Staff,  Quartermaster 
Division: 

a.    According  to  a  report  from  Naval  Con- 
struction Office,  Nantes  the  effect  of  the  enemy  bombing  of  the 
submarine  shelters  at  St.  Nazaire  (the  steel  tie-beams  sagged  60 
millimeters)  indicate  that  special  bombs  were  used.  On  the  whole 
the  result  does  not  warrant  concern^ 

b0    Naval  Staff's  request  that  priority  be 
given  to  the  construction  of  submarine  shelters  in  Norway  has 
been  rejected  by  Armed  Forces  High  Command,  Operations  Staff. 
Chief,  Naval  Staff  approved  the  suggestion  that  the  matter  be 
left  in  abeyance. 

c.    The  question  of  sea-borne  protection 
for  the  Blom  and  Voss  flying  boats  at  Bicarosse  was  discussed 
with  Commanding  Admiral  Naval  Group  West  who  will  take  the  neces- 
sary measures. 

d0    Agreement  \\ras  reached  at  the  beginning 
of  Jun„,  between  Naval  Staff,  Quartermaster  Division  and  the  Air 
Force  was  in  regard  to  the  further  construction  of  Siebel  ferries. 
Chief,  Naval  Staff  has  ordered  that  Commanding  General  South, 
who  had  again  raised  this  question,  (see  War  Diary  4  Jul.)  should 
be  referred  to  this  agreement  by  way  of  reply. 

e.  According  to  the  Todt  Organization's 
plans  the  time  required  for  the  Italian  harbor  constructions  and 
berths  is  estimated  at  probably  two  months.  The  idea  of  building 
a  cable  railway  over  the  Straits  of  Messina  has  been  abandoned. 

A  plan  for  laying  an  underwater  pipeline  for  fuel  is  now  under 
consideration. 

f.  General  von  Unruh's  interim  reports  on 
his  investigation  of  the  Navy  do  not  call 'for  any  particular  meas- 
ures* They  contain  no  serious  criticisms. 

-65-  CONFIDENTIAL 


CONFIDENTIAL 
6  Jul.  1943 

III.  Chief,  Bureau  of  Naval  Administration  reports 
that  the  order  of  Chief,  Armed  Forces  High  Co:xiand  on  the  pro- 
vision of  labor  for  the  1943  naval  program, ' in  accordance  with 
the  Fuehrer's  directives,  has  been  received. 

In  a  highly  restricted  circle: 

IV.  Report  by  Naval  Staff,  Operations  Division. 
Operations  Branch. 

a.    Commanding  General,  South  has  compiled 
and  submitted  an  assessment  of  the  situation  on  the  islands  of 
Sicily,  Sardinia  and  Corsica  as  at  30  Jun.  Copy  for  Chief  of 
Staff- Naval  Staff  as  per  l/Skl  1909/43  Gkdos.  Chefs,  is  in  War 
Diary,  Part  C,  Vol.  XIV e 

The  conclusions  of  the  report  may  be  summarized  as  follows: 

"From  the  aspect  of  forces  and  supplies,  it  is  entirely  feasible 
for  the  islands  of  Sicily,  Sardinia  and  Corsica  to  be  held  against 
an  attack  by  strong  enemy  forces.   The  attitude  of  the  Italian 
troops  however,  will  be  decisive.  It  i3  to  be  hoped  that  the 
presence  and  later,  the  participation  of  German  troops  will  suf- 
fice to  raise  the  morale  of  the  Italian  troops.  If  the  Italian 
island  defenses  in  general  and  the  Italian  soldier  in  particular 
are  found  wanting  it  is  to  be  expected  that  the  islands  will  sooner 
or  later  be  lost  as  there  are  not  enough  German  forces  to  defend 
the  islands  alone  in  the  long  run." 

The  report  further  states  that  the  naval  artillery  detachment  in 
Sicily  will  be  stationed  near  Gela.  An  enemy  attack  against  the 
southeastern  part  of  Sicily  with  a  subsequent  thrust  or  simul- 
taneous break-through  into  the  Straits  of  liessina,  as  anticipated 
by  Command  ing  General  South,  would  make  it  very  difficult  to  with- 
draw our  naval  forces  and  merchant  ships  from  the  Tyrehenian  Sea 
to  the  East0  This  assessment  of  the  situation  has  been  forwarded 
direct  to  Commanding  Admiral,  German  Naval  Command,  Italy*, 

b.    The  dates  of  departure  for  5  blockade 
runners  in  Japan  must  be  fixed  now.  It  is  planned  to  arrange 
for  3  of  the  ships  to  reach  Europe  in  Nov.,  and  2  in  Dec.   The 
voyage  alone  will  take  50  to  54  days  in  addition  to  which  waiting 
periods  are  planned  in'  the  South  Atlantic  and  the  Indian  Ocean. 
Moreover,  the  ships  have  sufficient  supplies  to  enable  them  to 
stay  at  sea,  if  necessary,  until  the  next  new-moon  period  after 
the  scheduled  month  of  arrival.  Chief,  Naval  Staff  has  approved. 

Special  Items : 

-66-  CONFIDENTIAL* 


CONFIDENTIAL 

6  Jul.  1943 

I0    The  German  Armistice  Commission  (Navy)  has  reported  on  the 
negotiations  in  regard  to  French  ship-building  materials  which 
had  been  undesirably  complicated  by  the  evidently  fluctuating 
and  pressure  demands  of  Reich  Commissioner  0f  Maritime  Shipping,, 
The  German  Armistice  Commission  considers  that  a  fundamental  de- 
cision between  High  Command,  Navy  and  the  Reich  Commissioner  of 
Maritime  Shipping  is  necessary  before  the  discussions  with  the 
French  are  resumed.   For  copy  of  the  teletype  l/Skl  19210/43 
Gkdos  see  War  Diary,  Part  C,  Vol.  V. 

II.   Upon  the  basis  of  captured  material  iJaval  Staff,  Naval 
Intelligence  Division  has  compiled  a  report  on  a  new  type  of 
fast  landing  boat  for  troops  (LCP).   For  copy  as  per  l/Skl 
20210/43  geh0  see  War  Diary,  Part  D  "Material  on  the  Enemy  Sit- 
uation o  " 

IIIS  Lieutenant  Bartels,  Commander  of  the  Coastal  Defense  For- 
mation on  the  west  coast  of  Norway  has  submitted  some  interesting 
ideas  on  the  use  of  fhantasy  (illusion?)  as  a  weapon,  making 
practical  suggestions  as  to  how  enemy  activities  in  the  Norwegian 
coastal  areas  could  be  warded  off.  Naval  Staff  has  called  the 
attention  of  the  operational  stations  to  this  suggestion.   For 
copy  of  the  order  as  per  l/Skl  I  op  17637/43  Gkdos  see  War  Diary, 
Part  B,  Vol.  V0 

Situation  on  6  Jul0  1943 : 

In         Warfare  in  Foreign  Waters: 

1„    Enemy  Situation: 

Nothing  to  report „ 

2e    Own  Situation: 

Naval  Attache  Tokyo  reports  that  i^JlCO  POLO  is  to  be 
met  by  minelayer  KAZUTAKA  and  a  submarine  chaser  and  has  forwarded 
details  on  the  characteristics  of  these  units.   Laval  Staff,  Sub- 
marine Division  has  been  informed , 

In  regard  to  the  question  of  removing  the  top  masts,  Naval  attache, 
Tokyo  has  been  instructed,  by  telegram  0215,  as  follows: 

10    The  criticisms  from  Tokyo  have  been  thoroughly 
considered  by  this  office  Naval  Staff  regards  the  striking  fea- 
tures of  the  blockade  runners  as  more  dangerous  than  a  reduction 
of  the  horizon  by  removal  of  the-  top-masts 0 

-67-  COMF1 DEKTIAL 


confidential 

6  Jul,  1943 

2.  The  look-out  on  the  mast-head  above  the  saling 
on  the  blockade-runners  is  usually  higher  than  the  enemy  look- 
out on  the  saling  or  on  the  highest  part  of  the  bridge  as  is  now- 
usual. 

3.  In  poor  visibility;  dusk  etc,  the  height  of  the 
look-out  is  of  no  consequence  x>/hereas  harmless  and  usual  features 
are  then  of  the  greatest  helpc 

4o  The  Naval  Staff  admits  the  criticisms  of  the 

blockade-runner  captain?     to  be  important  for  the  voyage  and  the 
order  to  remove  the  top-masts  is  hereby  withdrawn.      Naval  Staff- 
recommends  installation  of  telescopic  top-masts   if  possible  and, 
if  this  is  not  possible,   removal  of  at  least  one  top-mast  so  as 
to  have  nasts  of  different  lengths  as  used  on  enemy  ships.     This 
will  make  it  much  more  difficult  to   estimate     the  ship's  posi- 
tion.    After  thorough  examination  of  the  plans  reported  by  Naval 
Attache  Tokyo  for  the   resumption  of  the  blockade-runner  service, 
the  following  dates  have  been  fixed  for  the  ships  to  be  in  the 
Southern  area  ports  ready  to   leave  for  Europe: 


i. 


WESEHLAND  IS  Sept. 

BURGENLAND  25  Sept. 

RIO  GRANDE  30  Sept, 

0S0RN0  26  Oct 8 

ALSTERUFER  4  Nov. 

Dates  of  departure  from  Japan  will  be  fixed  accordingly  by  Naval 
Attach!  Tokyo,  For  copy  of  telegram  l/Skl  I  k  1927/43  Gkdos. 
Chefs,  see  War  Diary,  Part  C,  Vol.  I. 

Naval  Staff  forwarded  further  information  on  the  political  situa- 
tion to  Ship  "28"  by  radiogram  1325.  The  message  deals  with  the 
Iberian  Peninsula  and  Turkey. 

German  Naval  Command,  Italy  has  transmitted  the  position  of  the 
motor  ship  VULCANIA  as  1507  N.  4155  E  at  0900  on  4  Jul.  (see 
teletype  1735). 

II.   Situation  Nest  Area: 

10    Enemy  Situation: 

Reconnaissance  activity  was  normal  in  the  area  of 
the  19th  Group.  27  planes  wore  in  operation. 

20    Own  Situation: 

Atlantic  Coast: 

-68-  CONFIDENTIAL 


CONFIDENTIAL 
6  Jul.  1943 

The  submarine  U  "462"  convoy  entered  the  Gironde  at  1030.  Tor- 
pedoe  boat  MOEWE  and  JAGUAR  entered  La  Pallice  at  1200.   In  BF 
8640  locating  signals  on  the  600  meter  band  wore  heard  at  the 
same  position  as  those  heard  by  submarine  U  "462"  on  her  way 
out  immediately  prior  to  an  enemy  air  attack.  Search  for  radio 
sets  on 'two  Spanish  fishing  steamers  in  the  area  produced  no 
results 0 

Between  0100  and  0200,  a  mine-laying  action  12  miles  southwest 
of  Brest  was  detected  by  direction  finding.  Escort  and  patrol 
services  were  carried  out  off  the  Atlantic  coast  according  to 
plan, 

Channel  Coast: 

The  operations  of  the  forces  of  Commanding  Admiral 
Defenses  West  were  carried  cut  without  incident.  At  2100,  a 
larger  number  of  enemy  bombs  were  dropped  on  the  harbor  and 
town  area  of  Boulogne  without  causing  military  damage.  4th 
Torpodo  Boat  Flotilla  will  move  from  Boulogne  to  Le  Havre  under 
anti-mine  escort  of  8th  Motor  Minesweeper  Flotillae 

According  to  reports  from  Group  West,  frequent  hsavy  explosions 
a  great  distance  away  and  in  various  locations  between  Boulogne 
and  Cherbourg  have  been  heard  since  25  Jun.  There  is  no  confir- 
mation for  the  original  assumption  that  the  explosions  wore  due 
to  minesweeping  in  our  own  flank  barrages.  Only  one  air  recon- 
naissance mission  could  be  made  and  produced  no  results.  On  2 
Jul.,  the  noise  of  aircraft  was  picked  up  in  connection  with  the 
explosions  for  the  first  time0  On  the  evening  of  5  Jul.,  the 
explosions  were  so  strong  that  windows  in  Dieppe  were  shaken* 
Group  West  has  asked  all  Navy  and  Army  offices  to  give  the  most 
exact  details  possible  of  location  and  time  in  order  that  the 
distances  may  be  established,  2nd  Coastal  Patrol  Force  has  been 
Ordered  to  request  immediate  air  reconnaissance  on  every  occasion* 

III,  North  Sea,  Norway.  Northern  Waters : 

forth  Sea: 

The  11th  Training  Flotilla  shot  down  an  Me-109  plane  with- 
out recognition  signal  north  of  Norderncy  at  1010,   B-Group  of 
34th  Minesweeper  Flotilla  repulsed  an  attack  by  enemy  PT-boats 
west  of  Den  Holder  between  0155  <n-nd  0210,  At  0610,  the  group 
was  unsuccessfully  attacked  by  2  enemy  fighters  and  at  1240  by 
gunfire  from  7  enemy 'planes  flying "at  low  level.  The .boats  were 
slightly  damaged. 

Five  ELM/J  mines  were  cleared  off  the  East  Frisian  Islands. 

-69-  CONFIDENTIAL 


CONFIDENTIAL 
6  Jul  1943  " 

Escort  and  patrol  duties  in  the  area  of  Command ing  Admiral 
Defenses  North  wore  carried  out  as  scheduled.  The  last  2  boats 
of  11th  Motor  Minesweeper  Flotilla  moved  from  Cuxhavcn  to  Rotter- 
dam via  the  canals  and  Dclfzyl9 

Non-fay,  Northern  I/aters: 

1.    Enemy  Situation: 

Nine  planes  were  observed  operating  in  the  North  Sea 
and  4  in  the  area  of  the  Iceland  squadrons.  Cur  reconnaissance 
in  the  Arctic  produced  no  tactical  information.  A  group  of  13 
fishing  smacks  was  sighted  in  the  Denmark  Strait  in  the  area  of 
Grimsey  Island  and  another  group  of  6  fishing  smacks  east  of  Lan- 
gancSo   There  were  several  coastal  vessels  on  various  courses 
west  of  Faroes « 

20    Own  Situation: 

On  4  Jul.,  20  rounds  were  fired  on  the  Cape  Romanov 
and  Petsamo  batteries  by  two  new  guns  in  hidden  positions  on  the 
Ribachi  Peninsula.  Minor  enemy  air  activity  was  observed  in  the 
Narvik  and  Vardoe  areas  and  near  Trondhcim  and  Bergen.  Twenty 
ships  and  1  submarine  were  escorted  to  the  north  and  20  ships  to 
the  south o  At  2136  on  5  Jul.,  an  FW  58  plane  was  shot  down  by 
one  of  our  conveys  "because  the  recognition  signal  was  not  im- 
mediately answered,,  The  crew  was  rescued. 

Adffijxalj  Northern  Waters  reports  that  the  battle  group  left  port 
as  scheduled  on  the  evening  of  4  Jul.  for  training  exercises 0 

IV.   Skagorrak.  Baltic  Sea  Entrances,  Baltic  Sea: 

1.  Enemy  Situation: 

Enemy  ship  movements  off  Kronstadt  Bay  and  in  the 
eastern  part  of  the  Gulf  of  Finland  were  as  usual. 

2.  Own  Situation: 

At  20C0  on  5  Jul.,  2  Danish  naval  cadets  with  2 
petty  officers  and  4  ratings  seized  a  mctorboat  in  the  Danish 
navy  yard  and  deserted  to  Sweden.  It  was  impossible  to  prevent 
their  escape  due  to  the  superior  speed  of  thu  bo:..t0   (See  tele- 
type 1200) 0 

Otherwise,  there  is  nothing  special  to  report  from  the  Baltic 
Sea  Area* 


-70-  '  CONFIDENTIAL 


CONFIDENTLY 
6  Jul.   1943 

V,  Submarine  Warfare: 

1.  Enemy  Situation: 

According  to  .an  Exchange-report,  the  British  Ad- 
miralty has  officially  confirmed  that  the  "gap"  in  the  Atlantic 
has  been  closed  by  the  use  of  newly-constructed  auxiliary  air- 
craft carriers.   For  ten  days,  no  submarines  had  been  sighted 
in  any  part  of  the  Northern  Atlantic.  The  auxiliary  aircraft 
carriers  arc  said  to  be  stationed  at  fixed  positions  in  the  gap 
and  will  be  replaced  at  regular  intervals, 

2.  Own  Situation: 

In  the  vlorth  Atlantic,  strong  enemy  air  activity  was 
reported  from  the  area  of  Group  "Geierl"  (CF  66).   Throe  sub- 
marines returning  together  were  bombed  in  BF  7&32  oh  5  Jul., 
One  of  the  three  boats,  U  "535",  is  probably  missing,, 

U  "66"  was  lightly  rammed  by  the  ship  she  was  attacking  during 
a  daylight  attack  off  the  American  cast  coast  in  DC  8120.  U  "777" 
sank  the  new  Canadian  ship  J..SPERPARK,  probably  7,000  BRT,  en 
route  from  India  to  Durban  in  JA  2577  off  the " east  coast  of  Africa. 
The  ship  was  sailing  with  her  torpedo  nets  up. 

A  success  was  also  reported  from  the  Mediterranean. 

Naval  Staff,  Submarine  Division  has  submitted  operational  order 
"New  York"  for  U  "117"  as  ah  alternative  to  the  mine  operation 
in  the  Straits  cf  Gibraltar. 

Naval  Staff  has  no  comment. 

VI«   Aerial  Warfare : 

British  Isles  and  Vicinity: 

The  3rd  Air  Force  had  139  planes  in  operation  in  the  West 
area  and  3  in  the  Mediterranean,  During  daylight,  incursions  by 
strong  enemy  fighter  formations  were  reported  as  well  as  a  strafing 
attack  on  a  freight  train  in  Holland.  For  the  attacks  on  34th 
Minesweeper  Flotilla  and  on  Boulogne  sec  "Situation  West  Area." 
One  enemy  plane  was  shot  down  by  naval  anti  aircraft  fire  near 
Brest.   During  the  night  of  6  Jul.,  125-130  incursions  were  made 
into  German-controlled  territory,  10  of  which  were  nuisance  flights 
in  the  Ruhr  area.  Most  cf  the  other  planes  probably  laid  mines 
in  the  coastal  waters  of  the  Bay  of  Biscay  up  to  the  Girondc  mouth. 
Our  reconnaissance,  carried  out  by  12  planes  for  Commander,  PT  Boat 
produced  no  results. 

-71-  CUiFIDEiITLJ, 


confidential 

6  Jul.  1943 

-.rditerranean  Theater: 

During  the  night  of  5  Jul.,  our  heaviest  b.mbor  forces 
attacked  ship  targets  and  harbor  installations  at  Bizerta„  ac- 
cording to  reports  so  far  received,  the  targets  were  widely  spaced. 
No  direct  hits  were  reported.  Thirteen  planes  failed  to  returnc 

No  damage  was  caused  by  enemy  air  attacks  on  three  airfields  in 
Sicily  in  the  night  of  5  Jul.  by  about  650  encny  planes  of  all 
types.   The  attacks  were  continued  during  the  day.  For  damage 
sustained,  sec  Daily  Situation,  Seven  of  the  at  acking  planes 
were  shot  down  by  our  anti  aircraft  fire.  During  the  night  of" 
6  Jul.,  about  100  high  explosive  bombs  were  dropped  on  Palermo, 
Here,  too,  1  enemy  plane  was  brought  down  by  AA  fire.  Our  fighters 
hive  not  yet  reported  their  score  for  the  day. 

Eastern  Front: 

On  6  Jul,,  205  enemy  planes  were  shot  down  on  the  ^rmy  front 
and  15  of  our  own  planes  wore  lost. 

Photographic  reconnaissance  of  the  Black  Sea  area  was  flown  in 
the  ai  f  the  4th  Air  Force.  For  the  reconnaissance  results 
of  5th  -vir  Force,  see  Situation  in  Northern  ~..raters. 

Special  Items: 

The  use  by  the  British  Air  Force  of  small  rescue  motor-boats  which 
can  be  dropped  by  parachute  from  sea-rescue  planes  was  mentioned 
for  the  first  time  in  the  Times  of  30  Jun,  For  further  details, 
sec  News  Evaluation  by  Naval  Staff,  Naval  Intelligence  Division 
as  per  l/Skl  20132/43  gch,  in  War  Diary,  Part  D,  "Material  on  the 
Enemy  Situation,"  One  of  these  boats  is  said  to  have  been  dropped 
over  the  North  Sea  from  a  height  of  304  meters  and  to  have  given 
a  successful  performance, 

VII.  Warfare  in  the  Mediterranean  and  Black  Sea : 

1,    P).uemy  Situation.  Mediterranean: 

A  convoy  of  44  vessels  including  35  freighters  and 
6  L3T  carrying  troops  passed  Tangicrs  at  2200  on  5  Jul,,  and 
was  reported  from  Tres  Fcrcas  on  an  easterly  course  at  1510  on 
6  Julo  in  the  forenoon  of  the  same  day,  a  convoy  of  37  ships 
coming  from  the  Mediterranean  passed  the  Straits  of  Gibraltar 
Strait  to  the  west.  In  addition  11  steamers  put  into  Gibraltar 
from  the  Mediterranean  and  5  steamers  and  2  tankers  with  US  aux- 
iliary cruiser  and  1  US  destroyer  left  Gibraltar  for  the  Atlantic, 
Neither  battleships,  aircraft  carriers  nor  cruisers  were  observed 
in  Gibraltar  at  neon, 

-72-  CONFIDENTLY 


CONFIDEUTLiL 
6  Jul.  1943 

Our  air  reconnaissance  reported  at  0445,  20-25  ships  with  1 
cruiser;  on  course  260°,  30  miles  ncrth-northcast  of  La  Galite; 
at  0900,1  cruiser  and  3  destroyers' on  an  easterly  course,  45 
miles  northwest  of  Bougie,  at  1910,  3  battleships,  1"  aircraft 
carrier  and  several  small  units  on  a  westerly  course,  at  high 
speed,  30  miles  north -northwest  of  Bougie, 

On  the  afternoon  of  5  Jul,,  according  to  photographic  reconnais- 
sance there  were  2' light  cruisers,  1  destroyer,  6  PT  beats,  12 
auxiliary  warships,  23  merchant  ships,  4  tankers  and  1  LCT  at 
Bone,  2  DIDO  class' cruisers,  11  destroyers,  15  PT  boats,  31  ' 
auxiliary  v/arships,  18  auxiliary  minesweepers,  35  freighters,  2 
tankers,  6  LSI,  40  LST,  119  LCT,  28  LCJ  and  16  LCM  in  the  harbor 
and  roads  of  Bizerta  and  Ferryville.  This  indicates  a  consider- 
able increase  in  light  naval  forces  and  landing  vessels  as  com- 
pared with  29  Jun, 

Single  small  warships  were  sighted  in  the  eastern  exits  of  the 
Sicilian  Channel,, 

At  1005,  a  large  westbound  convoy  of  about  20  ships  was  located 
and  attacked  in  CO  5121  in  the  Eastern  licdit  crrancan. 

Submarines  were  observed  45  miles  west  of  Oristano,  34  miles 
southwest  of  Leghorn  and  20  miles  west  of  the  southern  tip  of 
Corfu* 

A  report  by  Naval  Staff,  Naval  Intelligence  Division  on  the  ex- 
tension of  the  port  of  Algiers  as  per  l/3kl  19974/43  geh,  is 
filed  in  War  Diary,  Part  D  "Material  on  the  Enemy  Situation," 

.  20    Own  Situation.  Mediterranean; 

The  P0MMERN  and  the  BRANDENBURG  are  engaged  in  trans- 
porting troops  from  Leghorn  to  Bastia.   At  0101  a  convoy  from  Bastia 
to  Leghorn  was  unsuccessfully  attacked  by  three  torpedoes  from  S» 

enemy  submarine.  34  miles  southwest  of  Leghorn*  Motor  Minesweeper 
R  "6"  attacked  the  submarine. 

Three  Italian  subrr. rines  arc  reported  in  the  operational  area. 

At  1005,  submarine  U  "453"  made  a  4- fan  torpedo  attack  on,  and 
probably  sank  an  8,000  BRT  steamer  in  a  westbound  convoy  in  CO 
5721,  Seventy-five  depth  charges  were  dropped  on  the  submarine 
which  suffered  some  damage. 

Commanding  General  South  has  reported  to  .jried  Forces,  High  Com- 
mand his  plans  for  the  transfer  of  ships  to  the  Aegean  with  in- 
formation copy  to  Naval  Staff,  It  is  planned  for  the  steamer 

-73-  CCi,'FIDEIITIAL 


CONFIDENTIAL 
6  Jul,  1943 

RUSS  to  sa.il  fron  Catania  and  the  stearic r  OLBIA  from  Naples  on 
6  Jul.   The  steamer  NIKOLAUS  is  scheduled  to  leave  Bastia  on  7 
Jul.   The  withdrawal  of  the  escort  forces  required  for  the  trans- 
fer to  the  Aegean  will  greatly  reduce  the  protection  of  our 
island  transports*   (See  teletype  2045) o 

Commanding  General,  South  has  also  commented  on  the  report  of 
the  Reich  Commissioner  of  Maritime  Shipping  (see  War  Diary  5  Jul.) 
and  corrected  several  points  in  the  report.  For  copy  of  tele- 
type 1/Skl  19174/43  Gkdos.  see  War  Diary,  Part  E,  Vol.  XI. 

German  Naval  Command,  Italy  urgently  requires  400  cutting  floats 
and  1600  explosive  buoys  for  the  new  barrage  project  and  has  re- 
quested that  they  be  prepared  and  dispatched.  Naval  Staff  has 
ordered  that  the  cutting  floats  and  about  1000  explosive  buoys 
be  allotted  to  the  Italian  Navy.  More  explosive  buoys  can  not  . 
be  provided  as  production  was  stopped  in  favor  of  cutting  floats 
at  the  beginning  of  1942, 

3o    Sea  Transport  Situation: 

The  Island  supply  service  was  carried  out  according 
to  plan.  Except  for  the  unsuccessful  submarine  attack  oh  the 
Bastia  -  Leghorn  convoy,  no  incidents  have  been  reported, 

he         Area  Naval  Group  South: 

Aegean: 

The  reported  entrance  of  an  enemy  submarine  into 
the  harbor  at  Livadia  is  apparently  not  confirmed.   The  report 
was  originated  by  an  Italian  Army  patrol  which  presumably  made 
a  mistaken  observation. 

Two  of  our  submarine  chasers  left  Piraeus  and  1  destroyer  and 
1  torpedoboat  left  Rhodes  to  escort  the  tanker  l/ILHELMSBURG  off 
the  Dardanelles,  Convoy  and  transport  traffic  in  the  Aegean  was 
carried  out  as  scheduled. 

According  to  a  report  from  German  Air  Force  Command,  Southeast, 
six  flights  by  enemy  planes  across  the  Pcloponnese  in  the  direc- 
tion of  Ioannina  for  the  purpose  of  supplying  the  rebels  were 
observed  during  the  night  of  5  Jul, 

Black  Sea: 

Enemy  Situation: 

According  to  air  reconnaissance' a  merchantman  with 
3  escort  vessels,  on  a  southeasterly  course,  was  12  miles  south- 
east of  Adler  at  0615.  A  photograph  showed  8  submarines,  9 

-74-  CONFIDENTIAL 


CONFIDENTIAL 
6  Jul.  1943 

minesweepers' arid  2  steamers  at  Ochomchiry  in  the  morningo  In 
the  forenoon,  in  the  Azov  Sea  4  motor  minesweepers  and  70  other 
boats  were  sighted  at  Pinorsko,  40  boats  at'Satki  and  55  boats 
along  the  coast  between  Primorsko  and  Ycisk. 

Own  Situation: 

In  the  night  of  5  Jul.,  1st  PT  Boat  Flotilla  torpedoed 
and  sank  3  lighters  of  800  BRT,  500  BRT  and  400  BRT  respectively 
from  an  escorted  lighter  formation  30  miles  northeast  of  Tuapse „ 
No  damage  was  caused  by  the  escort  vessels  counter  action^  On 
the  way  back,  a  brief  engagement  took  place  with  a  passing  enemy 
motor  gun  boat  in  the  course  of  which  several  hits  were  observed 
on  the  enemy  vessel9  PT  boat  S  "47"  had  her  engine  put  tempor- 
al xly  out  of  action  by  a  hit* 

An  enemy  submarine  reported  at  0400  by  out  planes  34  miles  west 
of  Eupatcria  was  "attacked  with  four  depth  charges  e  A  hit  on  the 
bow  was  observedo 

At  1200,  submarine  U  "19"  began  her  return  trip  to  Theodosia0 

A  supplementary  report  states  that  25  shells  were  fired  from  the 
sea  on  Mariupol  during  the  night  of  3  Jul0  No  damage  was  caused, 

The  Danube  estuary  is  still  closed  to  traffic  because  of  suspected 
mines o 

Patrol  boats  off  Mariupol,  in  Temriuk  Bay,  in  the  northern  exit 
of  the  Kerch  Straits  and  east  of  Theodosia  sighted  no  enemy 
forces  during  the  night  of  5  Jul, 

Group  South  has  asked  for  an  immediate  allotment  of  80  TMB-mines 
for  submarine  ope rrt ions© 

As,  since  15  Feb0  Group  South  still  has  15  TI-ZB-mines  as  opera- 
tional reserve  for  submarine  use,  Naval  Staff  has  ordered  that 
enough  mines  be  .allotted  to  make  up  the  difference  The  Group's 
attention  has  been  called  to  the  fact  that  the  precious'  TM-mines 
which  are  specially  made  to  fit  the  torpedo  firing  gear,  should 
be  used  by  submarines  only,  and  other  uses  such  as  protection 
against  landings  as  planned  by  Group  South  in  spite  of  Naval  Staff's 
repeated  protests  should  be  restricted  to  exceptional  cases  such 
as  withdrawals o  LM-mines  are  available  for  PT  boat  operations  and 
RM-,  LM-mincs  for  other  types  of  nine  carriers  and  for  defensive 
barrages a 

VIII.  Situation  East  ^sia : 

-75-  CONFIDENTIAL 


CONFIDENTIAL 
Jul.  1943 

-According  to  a  report  from  Japanese  Imperial  Headquarters, 
Japanese  Army  and  Navy  forces  attacked  the  enemy  bridgehead  at 
Rendova  on  2  Jul.  and  destroyed  9  enemy  planes,  1  transport  and 
a  number  of  small  ships 0  Furthermore,  1  enemy  torpedo  boat  was 
sunk  and  others  heavily  damaged.  During  an  air  attack  on  Rendova 
on  4  Jul.,  5  transports  and  10  landing  boats  were  sunk  and  23 
enemy  planes  shot  down  with  the  loss  of  9  Japanese  planes? 

The  U.  3.  Navy  Department  has  announced  that  an  encounter  took 
place  between  U.  S.  and  Japanese  naval  forces  in  the  Gulf  of 
Kula  on  the  evening  of  5  Jul. 

according  to  a  Swedish  press  report  from  London,  the  Japanese 
Admiral  Kaya  has,  in  the  South  Sea,  10  -  12- battleships  includ- 
ing 2  of  the  latest  type  of  43,000  3RT  each,  5-6  aircraft  car- 
riers and  70  submarines  as  well  as  a  considerable  number  of 
cruisers  and  destroyers 0 


7  Jul.  1943 

Items  of  Political  Importance: 

according  to  Exchange  Telegraph  and  Radio  Morocco,  Martinique 
has  gone  over  completely  to  the  French  Liberation  Committee  fol- 
lowing the  resignation  of  .tdmiral  Robert. 

A  statement  by  the  Brazilian  .jnbassador  in  London  on  his  country's 
contribution  to  the  war  has  been  published  b?   Reuter.   It  says, 
amongst  other  things,  that  9  destrojrers  and  12" corvettes  have 
been  built  in  the  dock-yards  at  Rio  de  Janeiro, 

Conference  on  the  Situation  with  Chief.  Naval  Staff: 

No  special  reports  or  decisions. 

Chief,  Naval  Staff  left  to  report  at  Fuehrer  Headquarters 0 

Special  Items: 

I,         Naval  Staff  has  made  a  thorough  and  detailed  investigation 
of  the  already  mentioned  incident  arising  from  the  report,   made 
upon  arrival,    by  the  coriander  of  submarine  "J  "564",    in  regard 
to  the   alleged  delay  in  the  operational  orders   of  destroyers  Z  "24" 
and  "32",    sent  to  his  assistance*     Naval  Group  West's  exhaustive 
r-port  of  1  Jul.,   together  with   earlier  reports  from  all  offices 
concerned,   has  cleared  up  the  matter  sufficiently  for  a  final 
decision  to  be  reached.      The  decision  has  been  laid  dovm  in  order 

-76-  co;-:?idehtial 


CONFIDENTIAL 
6  Jul.  1943 

l/Skl  la  13808/43  Gkdos  of  6  Jul.  and  forwarded' to  Group  West 
■with  information  copy  to  8th  Destroyer  Flotilla0  By  the  same 
order  Group  North/Fleet;  Commander,  Destroyers;  Commander  Sub- 
marines West;  1st  Submarine  Flotilla,  and,  Naval  Staff,  Sub- 
marine Division,  for  information,  have  been  advised"  of  the  occur- 
rence and  its  settlement „   The  order  has  been  filed,  with  the 
above-mentioned  report  from  Group  West  as  per  l/Skl  19627/43 
geh0  in  War'  Diary,  Part  B,  Vol  V,  In  his  final  report  to  Chief, 
Naval  Staff,  Chief  of  Staff,  Naval  Staff  calls  attention  to  the 
fact  that  the  thorough  investigation  of  this  case  will  serve  as 
an  example  to  all  offices  concerned  to  act  similarly  and,  above 
all,  with  the  required  energy,  in  the  future, 

II, '   In  Special  Information  on  Wartime  Economics  Noa  282  of  29 
Jun0  1943,  "the  Bureau  of  Naval  armaments  discusses  the  great  mil- 
itary importance  of  increasing  the  nickel  shipments  from  Petsamc 
Unless  the  supplies  from  Petsamo  are  increased  in  the  third  quarter 
of  1943,  stocks  will  be  exhausted  by  the  end  of  this  year0  At 
present,  the  transport  problem  is  troublesome  as  maintenance  of 
the  trucks  for  the  shuttle  traffic  to  Kirkencs  is  difficult0  The 
report  has  been  filed  under  l/Skl  18703/43  Gkdos  in  the  files 
of  Naval  War  Staff,  Operations  Division,  Chief  of  Maritime  Branch. 

IIIo  Naval  Construction  Division  has  commented  on  the  question 
raised  by  Naval  Staff,  Operations  Division  of  de-centralizing  and 
transplanting  dockyards  (sec  War  Diary  26  Jun.)  and  has  also  re- 
ported on  the  dock-yard  expenses  necessary  to  carry  out  the  new 
warship  building  program.  Note  as  per  l/Skl  18666/43  Gkdos  is 
entered  in  War  Diary,  Part  B,  Vol.  V^ 

IV.   The  present  submarine  warfare  situation  and  the' possibility 
of  using  TM-mines  with  new  firing  devices  (M  2,  DM  1,  AA  l)  will 
increase  the  demand  for  TMB-mines  and  TI-iC-minese  In  addition  to 
the  production  of  100  TMC-mines  per  month  as  already  ordered,  it 
is  necessary  to  resume  production  of  100  ITIB-mincs  per  montho 
Naval  Staff  has  advised  Underwater  Obstacles  Branch  accordingly 
and  also  requesting  that  these  mines,  3  of  which  could  be  loaded 
in  each  torpedo  tube,  should  be  equipped  with  the  combined  firing 
devices «   If  necessary,  a  small  part  of  the  charge  could  be  dis- 
pensed with  or  reduced  life  tolerated,.  This  demand  for  a  mine 
with  new  firing  devices,  of  a  size  such  as  to  permit  3  of  them  to 
be  housed  in  each  torpedo  tube,  is  urgcntc 

V«    Armed  Forces  High  Command,  Intelligence  Division  has 
forwarded  information  from  the  Foreign  Office  in  regard  to  the 
establishment  of  military  formations  in  Croatia,  For  Copy  as 
per  l/Skl  200£?/43  geh„   sec  War  Diary  Part  B,  Vol.  V. 


-77-  CONFIDENTIAL 


COlfflDENTLJ, 
6  Jul.  1943 

Naval  Staff,  Quartermaster  Division  has  approved  the  request  of 

.val  Group  South  for  6  coastal  motor  boats  to  be  manned  by 
Croats,  The  Group  is  to  arrange  details  with  Commander  PT  Boats 
\-fac   is  in  charge  of  the  training  of  all  crews  for  coastal  motor 
boats  (toroedo  carriers).   For  copy  of  the  order  as  per  l/Skl 
19418/43  Gkdos  see  War  Diary,  Part  B,  Vol,  V, 

VI.   In  regard  to  the  use  of  sea  mines  with  new  firing  devices 
as  discussed  at  the  Conference  on  the  Situation  with  Chief,  Naval 
Staff  (see  War  Diary  307),  it  is  further  understood  from  a  letter 
from  the  Minister  for  Air  and  Commander  in  Chief,  Air  Force,  Op- 
erations Staff  of  25  Jun.  that  the  number  of  1500  mines  per  month 
can  only  be  laid  provided  that  the  situation  does  not  develop  in 
such  a  way  as  to  necessitate  the  transfer  to  another  theater  of 
the  forces  now  being  reorganized  for  3rd  Air  Force.  Commander 
in  Chief,  Air  Force  has  suggested  the  beginning  of  Sept.  1943  &S 
the  date  when  use  of  the  mines  with  new  firing  devices  could  be 
started. 

This  highly  qualified  promise  in  regard  to  a  long-planned  opera- 
tion whose  success  depends  on  the  sudden  large-scale  use  of  these 
mines  can  only  be  deplored  by  Naval  Staff.  After  an  exhaustive 
exposition  of  the  material  state  of  readiness  and  of  operation- 
al possibilities  and  plans,  Naval  Staff,  in  agreement  with  Air 
Force,  Operations  Staff  suggested  to  ^^racd  Forces,  High  Com- 
mand, Operations  Staff  that  full-scale  use  of  the  new  firing 
devices  be  planned  for  the  end  of  ^ug. /beginning  of  Septa  (new 
moon  period),  so  as  not  to  have  to  cope  at  once  with  the  autumn 
storms  which  are  equally  bad  for  PT  boats  and  planes,  although 
the  forces  will  probably  not  be  available  in  strength  until  Sept. 
It  is  planned  to  use  the  device  only  in  the  convoy  routes  around 
England  in  order  to  avoid  waste  and  to  concentrate  all  mining 
forces  directly  against  the  British  Isles  and  in  the  campaign 
against  <*nglc--Lnerican  shipping. 

Naval  Staff  has  therefore  asked  that  the  new  firing  devices  be 
released  on  25  Aug.  1943  3-nd  that  orders  be  issued  for  mass  em- 
ployment in  the  convoy  routes  around  the  British  Isles.  For  this 
purpose,  timely  replacement- and  reinforcement  of  the  forces  of 
3rd  Air  Force  was  requested,  emphasizing  that  these  forces  should 
also  be  capable  of  mining  the  ports  on  the  west  coast  of  England 
and  in  Northern  Ireland  (Bristol  Channel,  Liverpool,  Clyde  and 
Belfast).  Flight  ever  the  island  should  be  avoided  if  possible, 
and  technical  as  well  as  tactical  methods  should  be  sought  such 
as  to  eliminate  or,  at  least,  reduce  the  danger  of  firing  devices 
on  a  shot-down  plane  falling  into  the  hands  of  the  enemy.   The 
forces  at  present,  available,  are,  in  general,  capable  of  reach- 
ing only  the  eastern  ports  and  therefore  will  cover  only  the 

-78-  CONFIDENTIAL 


i 


••■•••  CCilFIDaUTLiL 

%   Jul,  1943 

local -distribution  traffic  of  the  British  homeland.   It  is  nec- 
essary, however,  to  strike  above  all  at  the  traffic  from  the 
Atlantic  both  off  and  in  the  western  harbors,  thus  making  an 
effective  contribution  to  the  war  against  shipping « 

Corresponding  Order  l/Skl  I  E  1832/43  Gkdos.  Chefs,  is  in  the 
Tiles  of  Naval  Staff,  Operations  Division  1-iine  Warfare  Section. 

VTI.  A  summary  of  data  on  the  enemy  obtained  by  Radio  Decipher- 
ing and  Radio  Intelligence  from  28  Junc  -  4  Jul,,  is  given  by  radio 
report  Wo.  27/43 » 

Situation  on  7  Jule  1943 

I.    War  in  Foreign  Waters: 

No  reports  have  been  received  from  our  own  vessels. 

Information  on  the  enemy  situation  was  forwarded  to  all  vessels 
in  foreign  waters  by  radiogram  1907 o 

II o   Situation  West  Area; 

1*    Enemy  Situation: 

Normal  reconnaissance  activity  by  32  planes  was  ob- 
served in  the  area  of  19th  Group,   The  operations  covered  the 
outer  Bny  of  Biscay  up  to  13°W0-and  were  temporarily  intensified 
between  2100  and  0400e  At  0700,a  radio-guard  ship  with  an  un- 
identified convoy  was  detected  in  the  area  of  51°30'  -  52°00'N, 
17  -  21°  W,  An  escort  plane  of  convoy  SC  "135"  was  in  the  area 
of  53°30»  -  55°00«  N,  1'2°  -  17°W. 

2.    Own  Situation: 

Atlantic  Coast: 

Nothing  to  re port 0   It  is  planned  to  send  2  torpedo 
boats  to  escort  2  submarines  leaving  Brest  on  8  Julr 

Channel  Coast: 

The  4th  Torpedo  Boat  Flotilla  moved  from  Boulogne  to 
Le  Havre.  Owing  to  stormy  weather,  there  was  no  convoy  traffic ., 
During  a  raid  by  an  enemy  air  formation  on  Lc  Havre,  there  were 
11  impacts  in  the  harbor  area  but  no  explosions.  As  the  planes 
were  flying  very  high,  Group  West  considers  there  is  no  reason 
to  suspect  mine-laying o 


-79-  CONFIDENTIAL 


CONFIDEi-TLX 
7  Jul.  1943  . 

Ill,  North  Sea.  Norway.  Northern  -Inters: 

North  Sea: 

Mine sweeping  operations  were  cancelled  due  to  bad  weather. 
«.t  Den  Holder,  1  enemy  plane  was  shot  down  by  naval  anti-aircraft 
artillery* 

Norway.  Northern  Uaters: 

1„    Enemy  Situation: 

Twenty-five  planes  wercnotcd  on  normal  reconnaissance 
flights  in  the  North  Sea. 

.Vb  2112,  a  BV  138-plane  reported  2  heavy  cruisers,  1  destroyer 
and  1  patrol  boat  on  course  1C0°  and  4  other  patrol  boats  on 
ciurse  70°  at  the  north-eastern  end  of  Iceland* 

2,    Own  Situation: 

On  5  Jul.,  enemy  batteries  on  the  Ribachi  Peninsula 
fired  25  rounds  on  our  traffic  in  the  Fjord  approaches.  The 
Ristinicmi  battery  returned  7  rounds  and  one  shell  was  seen  to 
hit  the  enemy  observation  post. 

On  6  Jul,,  a  very  rusty  inertia-ccntact  mine  of  Russian  origin 
was  cut  in  the  Rolvsoey  Fjord,  The  area  i>ras  closed  to  traffic. 

Only  minor  enemy  air  activity  was  observed  in  the  area  of  the 
west  coast.  An  F.\r  190  plane  crashed  in  Boemmclen  Fjorde 

Seventeen  north be und,  30  southbound  vessels  and  1  submarine  were 
accompanied  by   the  escort  service. 

The  battle  group  carried  out  training  exercises  as  planned  and 
returned  to  Kaafjord>  via  Lopphavet,  at  2200  on  6  Jul0  a  plane 
from  the  TIRPITZ  made  an  emergency  landing  and  was  scuttled „ 
The  crew  was  rescued. 

Tac   enemy  group  reported  at  2112  northeast  of  Iceland  is 
probably  a  first  indication  of  the  enemy's  reaction  to  the 
movements  of  our  formation. 

IV 3   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea: 

1,    Enemy  Situation: 

On  the  evening  of  6  Jul,,  Kronstadt  was  completely 
covered  by  smoke  screens.  During  the  c2ay,  heavy  traffic  of  tugs 

-80-  CONFIDENTLY 


CONFIDENTIAL 
7  Jul,  1943 

and  patrol  boats  was  observed  in  Kranstadt  Bay.  Twenty  ves- 
sels were  anchored  east  f  Lavansari. 


2,    Own  Situation: 

No  special  reports  have  been  received  from  the  area 
of  Commanding  Admiral,  Defenses  Baltic  <> 

On  the  occasion  of  Danish  "Amy  Day",  clashes  occurred  at  Copen- 
hagen between  the  Danish  populace  and  Danish  SS  personnel  and 
later  extended  also  to  German  ^rmy  and  A.ir  Force  personnel 0   The 
Navy  was  not  involved. 

Admiral,  Denmark  has  reported  further  details  on  the  escape  of 
the  Danish  Navy  motorboat  from  Copenhagen  to  Sweden,,  (See  War 
Diary  6  Jul,)s  For  copy  of  the  report,  see- Teletype  1840  c 

At  2355,  mine  exploding  vessel  "165"  sank  east  of  Gjedser  Odde 
after  being  seriously  damaged  by  a  mine.  Eighteen  men  are  mis- 
sing. 

Naval  Command,  Baltic  has  relaxed  the  order  regarding  anti-ground- 
mine  escort  in  the  area  of  Coastal  Defense  Commander,  l  Jest  „   For 
details,  see  teletype  1024e 

No  special  incidents  have  been  reported  from  Commander,  Mine- 
sweepers, Ba^tiCc 

In  the  area  of  Admiral,  Ealtic  Countries  both  sides  carried  out 
very  heavy  bombardments.  On  the  evening  of  7  Jul;*,  enemy  bombard- 
ment caused  material  damage  to  the  Peterhof  command  post  and  the 
Strelna  and  Koenigsberg  batteries.  On  y  Jul.,  the  newly-arrived 
heavy  battery  "Prinz  Heinrich"  bombarded  batteries  and  dock- 
yards at  Leningrad  for  the  first  time  with  25   rounds  and  4  hits 
were  observed c  The  target  put  up  smoke  screens  after.  8  salvoes. 
The  fire  was  returned  by  900  rounds  from  Kronstadt,  Carelia  and 
Leningrad.  Bearing  Post  East  of  the  "Prinz  Heinrich"  Battery 
sustained  a  direct  hit« 

There  was  great  air  activity  on  both  sides  in  the  area  of  the 
islands,   Our  forces  bombed  Seiskaari,  Lavensari  and  Peninsari 
and  vessels  east  of  Seiskaari.  Enemy  bombs  caused  slight  dam- 
age to  the  buildings  at  our  Glinki  command  post0 

V.    Submarine  Warfare: 

A  notable  success  is  reported  by  U  "185"  from  the  north 
coast  of  South  America  where  4  steamers  and  1  tanker  totalling 

-81-  CONFIDENTIAL 


confidzmtlj.    ■ 
7  Jul.  1943 

35,000  3RT  were   sunk  in  two  attacks,    on  a  protected  convoy  in 
FC  7179  and  FB  9396  respectively. 

U  "198"   sank,    en  6  Jule,   the  Grc.k  steaner  HYDH'JICS   (4,470  3RT) 
in  the  Indian  Ocean  and,    on  7  Jul.,   the  British  ship  LK'.Nx'i   (4,742 
BRT)   in  an  artillery  duel* 

Vic   serial  "Jar fare: 

British  Isles  and  Vicinity: 

The  3rd  Air  Force  had  93  planes  in  operation  in  the  West 
area  and  4  in  the  Mediterranean,,  During  air  battles  in  the  Bay 
of  Biscay  2  eneny  planes  and  a  third  probably  shot  down.  During 
the  day,  eneny  forces  of  medium  strength  made  strafing  attacks 
on  traffic  installations  in  occupied  territory,  including  one 
on  a  vessel  in  the  canal  north-northeast  of  Grent0 

Weak  harassing  activities  were  reported  from  the  Rhinoland  area 
in  the  night  of  7  Jul<, 

diterranean  Theater: 


Our  Air  Force  continued  reconnaissance  flights  in  the  sea 
areas  Algiers  -  Cagliari  -  Trapani  -  Malta  -  Sfax,  although  hon- 
oured by  unfavorable  weather.  It  was  impossible  to  fly  photo- 
graphic reconnaissance  for  targets  results  at  2izerta0  serial 
photographs  show  54  freight-carrying  gliders  on  two  airfields 
s:uth  of  Sousse.  The  movement  of  airborne  units  into  the  Tunisian 
area  is  thus  confirmed. 

Enemy  air  forces  made  harassing  flights  over  Sicily  and  Sardinia 
in  the  night  of" 6   Jul.,  and  attacked  Palomo  without  causing 
military  damage 

During  daylight,  attacks  on  airfields  in  Sicily  were  continued 
by  light,  heavy  and  very  heavy  bombers,  sometir.es  in  mixed  for- 
mations. During  the  night  of  7  Jul.,  Messina  and  San  Giovanni 
were  attacked  once  and  Catania  twice.   For  details,  see  Daily 
Situation*  .altogether  12  enemy  planes  ware  br might  down  and  5 
of  our  planes  were  destroyed  on  the  airfields. 

It  is  noticable  that,  in  the  systematic  attack  on  the  air- 
fields several,  in  the  neighborhood  of  harbors  or  which  are 
suitable  as  landing  places,  have  not  been  attacked  for  several 
days.  Landings  frcm  the  air  can  therefore  be  expected  at  these 
fields. 

Eastern  Front; 

-82-  CONFIDENTLY 


CONFIDENTIAL 
7  Jule  1943 

Sixty-six  enemy  pianos  were  shot  down  on  the  .ray  front „ 
No  other  reports  have  been  received,, 
VII «  Warfare  in  the  Mediterranean  and  Black  Sea: 

lo    Enemy  Situation,  Mediterranean; 

On  the  evening  of  6  Jul.,  and  on  the  forenoon  of 

7  Jul*,  1  transport  and  6  freighters  left  Gibraltar  for  the 
Atlantic 0 

according  to' an  Intelligence  report,  2  battleships  including 
the  WARSPITE,  1  aircraft  carrier  and  several  destroyers  left 
Algiers  on  30  Jun« 

Air  reconnaissance  reported  a  convoy  of  2  transports,  6  freighters 
of  up  to  20,000  BRT  and  5  freighters  of  up  to  10,000  BRT  with  6 
escort  ships, on  course  120°,  40  miles  northwest  of  Bougie,  at 
0900  on  7  Jul,   At  0300,  our  Air  Force  located  several  vessels 
north  of  Cape  Bon.  According  to  photographic  reconnaissance, 
only  2  coastal  vessels  and  1  apparently  damaged  LCT  were  at 
Pantelleria  on  6  Jul,   This  place  is  therefore  not  being  used 
as  a  base  at  present. 

According  to  Italian  reports,  at  2105,  ?-  formation  of  2  LCT,  6 
freighters  of  8,000  BRT  each,  2  tankers  of  10,000  BRT  each,  with 

8  escort  units,  2  of  them  with  barrage  balloons,  was  30  miles 
north  of  Bone  sailing  east.  Several  destroyers  and  other  war 
vessels  (?)  were  reported  off  Liccata, 

At  1245,  one  of  our  planes  reported  a  convo2>-  of  19  steamers  with 
1  cruiser  and  9  escort  vessels  sailing  west  in  the  Eastern  Med- 
iterranean, 25  miles  west-northwest  of  Dcrna. 

According  to  radio  intelligence,  one  convoy  was  under  air  alarm 
in  the  Marsa  Matruk  area,  one  in  the  Bengasi  area  and  one  in  the 
Apollo nia  area« 

The  Foreign  Office  has  forwarded  an  agent's  report  from  the 
Embassy  at  Ankarri  according  to  -which  the  attack  against  Crete 
will  start  on  15  Jul.,    from  Dern-\,    Tobruk  and  Marsa  Matruka 
The  agent  is  alledgedly  the  same  person  who  predicted  almost  the 
ex?.ct  date  of  the  attack  on  El  Alampin  and  liorocco* 

2a  Own  Situation,   Koditerrancan: 

Seven  boats  of  the  3rd  PT  beat  Flotilla  were  sent 


-83-  CONFIDENTIAL 


CGIJFIDENTI/.L 
7  Jul.  1943 

out  against  the  enemy  formation  reported  off  Licata.  Results 
have  not  yet  been  reported*  Combat  Groups  Augusta  and  Trapani 
have  been  alertcd<, 

The  POHMHRN  and  BRANDENBURG  are  to  transfer  from  Ajaccio  to 
Toulon* 

Torpedo  boat  Ta  "10"  and  motor  minesweeper  R  "211"  are,  on  convoy 
escort  duty  between  Messina  and  Corinth, 

On  the  afternoon  of  6  Jul.,  the  PT  boat  S  "59"  was  sunk  by  a  bomb 
during  an  enemy  air  attack  on  Empcdocle.  The  other  boats  were 
not  damaged o 

An  unspecified  number  of  moored  mines  was  located  10  miles  north- 
west of  Corfu, 

The  German  Armistice  Commission  (Navy)  has  reported  on  the  Italian 
efforts'  to  expedite  work  on  the  ex-French  warships  at  Toulon.  For 
details,  see  teletype  H30o 

3o    Sea  Tr"-nsoort  Situation: 

At  1000  on  6  Jul.,  the  steamer  "Tripoli"  (1,166  BRT) 
was  sunk  by  an  enemy  submarine  while  en  route  from  Bastia  to  Elba. 
Supply  traffic  to  Sardinia  and  Sicily  was  carried  out  to  schedule 
on  7  Jul, '  The  steamer  "P.L.M.  12"  is  to  transfer  from  Messina 
to  Greece. 

4.    Area  Naval  Group  South: 

uogcan: 

During  the  night  of  4  Jul,,  systematic  sabotage  ac- 
tions, probably  under  British  direction,  were  carried  out  in  Crete 
mainly  in  the  Hcraklion  area.  For  details  and  reprisal  measures, 
see  teletype  1250„ 

At  2105  en  6  Jul.,  there  was  an  enemy  submarine  off  the  southern 
tip  of  Nicaria  island,  according  to  an  Italian  report. 

Thirteen  mines  have  so  far  been  cleared  or  destroyed  by  gunfire  in 
the  mined  area  discovered  by  the  Motor ship  BULGARIA  south  of 
Salonika  on  4  Jul,  One  mine  was  towed  in  to  Salonika  for  examin- 
ation.  Coastal  guardboat  HM  "53"  struck  a  nine  during  the  locat- 
ing operations  and  sank.  An  alternative  lane  has  been  fixed* 


-84-  CCiFIDENTL'JL 


CONFIDENTIAL 

7  Jul.  1943 

In  spite  of  strong  escort  by  1-  destroyer,  1  torpedo  boat,  2 
submarine  chasers  and  2  planes,  the  tanker  TJILHELM33URG 
(7,020  BRT)  was  attacked  by  an  enemy  submarine  at  0807  after 
leaving  the  Dardanelles,  and  sank  at  0930  « 

The  loss  of  the  tanker  is  particularly  regrettable  in 
view  of  the  shipping  situation  in  the  Eastern  Mediter- 
ranean o 

Special  Items: 

Group  South  has  advised  Naval  Staff  for  information,  that  it  has 
requested  German  Naval  Command,  Italy  to  present  to  the  Italian 
Navy  and  to  support  the  Group's  views  on  the  plan  to  use  Italian 
PT  boats  from  Rhodes  against  the  Karmarica  coast.  For' tele- 
type 1/Skl  1945/43  Gkdos,  Chefs,  see  War  Diary,  Part  C,  Vol.  XIV. 

Black  Sea: 

Enemy  Situation: 

In  the  area  northwest  of  Tuapse  there  were  2  con- 
veys, totalling  7  vessels,  sailing  north . 

Own  Situation: 

Operations  by  4  boats  of  1st  PT  Boat  Flotilla  in  the 
area  20  miles  northwest  of  Tuapse  produced  no  results  during  the 
night  of  6  Jul*  The  landing  place  was  not  attacked  because  of 
coastal  fog  and  searchlight  barrages 0 

In  the  night  of  7  Jul.,  a  total  of  9  boats  from  1st  PT  Boat  Flo- 
tilla and  3rd  Motor  minesweeper  Flotilla  arc  to  operate  in  three 
groups  off  the  Caucasian  coast.  3  boats  of  11th  PT  Boat  Flotilla 
will  operate  oast  of  Theodosia. 

Submarine  U  "19"  entered  Theodosia, 

At  14C0,  a-  plane  bombed  an  enemy  submarine  15  miles  south-south- 
east of  Sevastopol „     An  underwater  explosion  was  observed. 

At  03-21,  a  convoy  was  unsuccessfully  attacked  by  an  enemy  sub- 
marine west  of  Eupatoriae  Attacks  on  the  submarine  were  also  un- 
successful. The  sane  convoy  was  unsuccessfully  attacked  by  4 
enemy  planes  at  0703 „  Three  of  the  attacking  planes  were  de- 
stroyed by  the  Roumanian  fighter  escort 0 

Further  enemy  air  attacks  were  made  on  Yalta  and  on  the  Anapa 

-85-  CONFIDENTIAL 


CONFIDENTIAL 
7  Jul.  1943 

transport.  At  Yalta,  1  naval  ferry  barge  was  heavily  damaged, 
1  steamer  slightly  damaged  and  1  fishing  smack  sunk,  anti- 
aircraft defense  was  unsuccessful.  In  the  134th  Anapa  Trans- 
port, 2  naval  ferry  barges  were  slightly  damaged  by  bomb 
fragments  ana  1  naval  ferry  barge  was  hit  by  three  8  kg.  bombs. 
Our  fighter  escort  was  unable  to  prevent  the  attack* 

Otherwise,  convoy  and  supply  traffic  was  carried  cut  according 
to  plan. 

Special  Items: 

Group  South  has  advised  Naval  Staff  for  information  of  the  Direc- 
tive to  Admiral  Black  Sea  and  Naval  Liaison  Staff ,  Romania  con- 
cerning anti-mine  defense  for  traffic  in  the  outer  Danube  estuary. 
For  copy  see  teletype  1445 

VIII.  Situation  Bast  ^sia: 

The  U.  3.  Navy  Department  has  announced  that,  in  the  night 
of  4  Jul,,  the  destroyer  STRONG  was  torpedoed  and  sunk  while 
bombarding  Japanese  positions  in  New  Guinea.  In  the  early  hours 
of  6  Jul.,  the  6th  U.  5.  Squadron  engaged  Japanese  surface  forces 
in  the  Gulf  of  Kula  (New  Georgia).   Both  sides  suffered  losses. 

He  Japanese  report  on  this  action  has  yet  been  received. 


3  Jul.  1943 

Items  of  Political  Importance: 

Nothing  to  report. 

Conference  on  the  Situation  with  Chief  of  Staff,  Naval  Staff: 

I0    Chief,  Naval  Staff,  Quarto  master  Division  reported  that 
the  Reich  Commissioner  of  Maritime  Shipping  has  proposed  that 
the  militarized  personnel  for  manning  be  classified  as  "essen- 
tial", Naval  Staff,  Quartermaster  Division  disapproved  the 
suggestion. 

In  a  hi^r'  ly  r^strict^a  circle  : 

II.   Report  by  Chief,  Naval  Staff.  Operations  Division.  Opera- 
tions Branch: 

a.    Plans  of  Commander,  Submarine,  Italy  for  submarine 

-86-  CONFIDENTIAL 


CONFIDENTIAL 
8  Jul.  1943 

operations  in  the  Eastern  Mediterranean.  It  is  planned  to 
send  1  boat  to  Cyrenaica  and  2  boats  to  the  sea  area  of  Cyprus. 
Commander,  Submarine  Italy  considers  the  dispatch  of  more 
submarines  inadvisable  in  view  of  the  small  number  of  boats 
available  and  the  strained  situation  in  the  Western  Mediter- 
ranean* 

b.    Mine  tasks  for  submarines  in  accordance  with 
memoranda  from  Naval  Staff,  Submarine  Division. 

c„    Finnish  request  for  the  return  of  14  ships  legally 
taken  over  before  the  outbreak  of  war  with  Russia.  For  details, 
see  War  Diary,  Part  C,  Vol.  VIII. 

III.  Chief,  Naval  Staff.  Operations  Division: 

Admiral  Bertoldi  has  submitted  a  request  from  the  Italian 
Admiralty  that  the  sailing  of  the  last  two  transport  submarines 
to  become  ready  at  Bordeaux  on  18  Jul0  be  cancelled  as  of  the  9 
boats  originally  destined  for  this  work,  5  have  already  been  lost,, 

The  facts  are  as  follows: 

AQUILA  VII  and  VIII  were  lost  before  conversion. 

AQUILA  I  is  missing 

AQUILA  V  left  on  18  Jun.  and  is  also  missing,, 

AQUILA  III  left  on  11  May  and  is  scheduled  to  be  met  by 

the  Japanese  north  of  the  Malacca  Strait  on  9  Jul. 

AQUILA  VI  left  on  18  Jun.  and  is  now  in  ES  97= 

AQUILA  IV  and  IX  will  probably  become  operational  on  18 

Jul. 

Chief  of  Staff,  Naval  Staff  is  of  the  opinion  that  the  Italian 
request  merits  no  consideration.  Italy  is  as  urgently  interested 
as  Germany  in  the  obtaining  of  rubber  and  tin„  The  matter 
must  be  left  to  the  decision  of  Chief,  Naval  Staff. 

Snecial  Items: 

I.    A  survey  of  losses  and  damage  caused  to  our  shipping  by 
enemy  action  in  Jun.  1943  (for  copy  of  l/3kl  IE  19281/43  Gkdos 
see  War  Diary,  Part  D  "Own  Shipping  Losses")  indicates 

10    that  the  heavy  air  attacks  on  our  convoys  in  the 
Holland  area  have  resulted  in  the  loss  of  only  one  steamer, 
thanks  to  effective  convoy  protection.   The  strength  of  the 
attack  is  evinced  by  the  numerous  escort  vessels  damaged. 


-87-  CONFIDENTIAL 


CONFIDENTIAL 
8  Jul,  1%3 

20    The  dinger  from  ground -mines  in  the  Baltic  and 
pth  Seas  has  decreased  due  to  the  reduction  in  the  number  of 
enemy  incurs! ons0 

3.    The  heaviest  losses  of   the  month  were  caused  by 
submarines  on  the  coasts  of  Sicily  and  Calabria a  This  was  prob- 
ably due  to  our  shortage  of  locating  equipment,  inadequate  anti- 
submarine defense  by  cur  submarine  chasers  and  planes  and  the 
good  radar  equipment  of  the  enemy  beats  which  act  in  close  co- 
operation with  their  Air  Forces 0 

II.  Group  North  Fleet  has  submitted  a  copy  of  the  statement 
sent  to  the  5th  Air  Force  on  the  problem  of  air  operations  against 
envoys,  with  the  request  that  Commander  in  Chief,  Air  Force, 
Operations  Staff  be  persuaded  to  lift  the  ban  on  reconnaissance 
flights  by  bombers  as  scon  as  possible. 

The  group's  comments  are  most  pertinent  .and  well  cal- 
culated to  convince  Air  Force,  Operations  Staff  along 
the  lines  suggested.  Naval  Staff's  approval  cf  the  let- 
ter to  5th  Air  Force  was  given  by  telephone  on  1  Jul; 
to  Chief  of  Staff,  Group  North  by  Chief,  Naval  Staff, 
Operations  Division. 

III.  Naval  Staff  has  advised  Group  West  in  regard  to  the  special 
operation  against  enemy  shipping  traffic  in  the  Gibraltar  area. 
Copy  of  order  l/S!:l  I  op  1933/43  Gkdos.  Chefs,  is  entered  in  War 
Diary,  Part  B,  Vol.  V. 

IV.  During  a  conference  between  the  Co::  n  Ing   Admiral  and  Com- 
mander in  Chief,  Navy,  Commanding  Admiral,  Naval  Command,  North 
Sea  suggested  the  construction  of  PT  boat-destroyers.  Naval 
Staff,  Operations  Division  has  already  dealt  with  this  question 
and  gave  definite  reasons  for  its  rejection  en  24  Nov.  1942. 
l/Skl  III  a  29791/42  Gkdos.  in  the  files  of  Naval  Staff,  Opera- 
tions Division,  Surface  Vessel  Constructional  Planning  Branch.) 

val  Command,  North  Sea  was  nevertheless  instructed  to  submit 
the  relevant  proposals. 

Situation  on  8  Jul.  1943 

I.    War  in  Foreign  Waters: 

1.    "-'.:-.■:: my  Situation: 

According  to  the  Spanish  intelligence  service,  6 
freighters  and  2  destroyers,  sailing  north,  were  sighted  between 

-S3-  CCNFIDEi.TIAL 


CONFIDENTIAL 
8  Jul.  1943 

Gran  Canaria  and  Fuerteventura  at  noon  on  7  Jul. 

2e    Own  Situation: 

Naval  Staff  has  informed  Ship  "28"  by  teletype  2009, 
that  there  are  2  Japanese  submarines  north  of  20°  S.,  west  of 
90°  E„  and,  by  teletype  2027,  that  a  U.S.  steamer  issued  an  SSSS 
call  on  a  submarine  attack  in  27°22'  S  10Q22'  E  which  was  re- 
peated from  Colombo  at  15l69 

No  reports  have  been  received  from  our  units. 

Ho   Situation  West  Area: 

lo    Enemy  Situation: 

Forty-seven  planes  were  noted  in  operation  in  the 
outer  Bay  of  Biscay  up  to  Cape  Ortegal  and  about  14°W.  One 
British  vessel  in  each  case  was  located  at 

1348  in  BE  2980 

1349  in  AL  1528 
1638  in  BF  7180 
2250  in  AL  6327  and 

at  2300  in  AL  6250. 

Air  reconnaissance  in  the  afternoon,  off  Falmouth  Bay,  reported 
10  merchantmen  sailing  northeast  which  were  later  again  noted 
off  Plymouth, 

According  to  intelligence  reports  from  Lisbon,  a  convoy,  of  which 
several  ships  are  expected  to  arrive  at  Lisbon  between  16  and  18 
Jul.,  is  said  to  have  left  Liverpool  on  5  Jul0 

2.    Own  Situation: 

Atlantic  Coast: 

Four  ELM/ J -mines  were  cleared  off  Lorient  and  Brest, 
The  GREIF  and  the  FALKE  left  at  0815  to  escort  submarines.  De- 
stroyers Z  "24"  and  "37"  have  been  standing  fcr"  at  Pauillac  since 
2300  to  render  assistance  to  submarine  U  "267"  which  is  unable 
to  submerge.  They  can  reach  the  vicinity  of  BF  85  by  1200  on  9 
Jul.,  provided  the  sea  gets  no  rougher. 

Channel  Coast: 

4th  Motor  Minesweeper  Flotilla  continued  its  special 

-89-  CO  FIDEITIAL 


CONFIDENTIAL 
3  Jul.  1943 

task  northeast  of  Cherbourg,  Torpedo  boats  T  "24"  and  "25"  will 
move  from  Cherbourg  to  St.  Male  during  the  night  of  8  Jul0 

Torpedo  operations  by  4th  and  5th  PT  Boat  Flotillas  are. planned 
in  Lyme  Bay  for  the  same  night 0 

At  2242,  6-7  enemy  planes  strafed  and  dropped  11  bombs  on  patrol 
boats  "1501"  and  "1516"  off  Dunkirk  mole.  One  of  the  attacking 
aircraft  was  shot  down.   Both  boats  suffered  slight  damage^  and 
casualties.  For  short-report,  see  teletype  0740/09. 

III.  North  Sea,  Norway,  Northern  Waters:    ■  ■ 

1.    North  Sea: 

Nothing  to  report. 

Group' West  will  approve  barrage  C  4  as  planned  by  Commanding  Ad- 
miral, Defenses  North  if  it  is  fitted  with  time  setting  set  for 
the  end  of  Oct.  at  the  latest^   The  Group  also  suggested  that 
the  barrage  be  laid  closer  to  the  route  in  order  to  give  more 
freedom  of  movement  to  Commander,  PT  Boats  and  to  make  it  more 
effective. 

As  it  is  probably  impossible  at  this  time  to  lay  a  barrage  with 
time  setting,  due  to  the  lack  of  material,  Naval  Staff  has  asked 
Commanding  Admiral  Defenses  North  to  submit  suggestions „ 

2C    Norway,  North  Sea: 

Enemy  Situation: 

The  formation  of  2  heavy  cruisers  and  1  destroyer 
of  the  JAVELIN  class  which  was  reported  at  2112  on  7  Jul*,  was 
again  sighted  on  8  Jul.,  at  0742,  sailing  east  in  AE  3755  and, 
at  1820,  on  a  southwesterly  mean-course  in  AE  3677,  a^  a  speed 
of  about  15  knots 0  The  formation  was  reported  for  the  last 
time  at  2120  in  AE  3841  on  a  course  220°  apparently  sailing  on 
and  off  (Tr.N,  literal  translation  of  the  German  sentence  which 
is  not  clear) „ 

Further  sightings:   at  2333  on  7  Jul.  1  probable  battleship  and 
1  destroyer  in  AN  1341  on  course  310°;  at  0255  on  8  Jul.,  2  de-  ■ 
stroyers  on  a  westerly  course,  at  low  speed,  in  AN  1237;  a"t  0550, 
1  destroyer  and  1  merchant  ship  with  a  balloon  barrage  on  course 
340°  in  AE  9915;  at  0930,  1  heavy  cruiser,  2  auxiliary  cruisers 
and  2  destroyers  on  course  60°  in  AF  7831*  Neither  this  forma- 
tion nor  the  battleship  were  observed  again  during  the  day.  But 

-90-  CONFIDENTIAL 


1 


> 


COMF1 DSNTIAL 
8  Jul,  1943 

at  1550,  a  formation  of  1  aircraft  carrier,  3  cruisers  and  9 
destroyers  was  sighted  on  an  easterly  course  in  AF  7957,  which 
may  have  been  identical  with  the  group  reported  at  0930  0  Our 
shadowing  plane  was  shot  down  about  1700  and  its  replacement 
was  unable  to  re-locate  the  formation  owing  to  bad  weather o 

According  to  Radio  Intelligence,  at  1128,  one  reconnaissance 
plane  in  AB  8485  and  another  in  AB  8293  reported:   "No  enemy 
sighted,"  The  radio-guard  ship  and  the  convoy  ''Encore"  re-  ' 
ported  to  Scapa  at  16071  "Shadower  near  subdividion  "Encore  I"; 
position  at  1559  AF  79  course  10°  speed  IS  knots," 

Group  North  Fleet  considers  that  a  clear  interpretation  of  the 
enemy  position  is  not  yet  possible  and  that  operations  against 
the  coast  or  perhaps  a  mine  blockade  and  air  attacks  are  not 
unlikely.   The  enemy's  disregard  for  concealment  may  also  in- 
dicate a  planned  diversion  for  the  purpose  of  tieing  down  our 
forces  in  the  area.  For  copy  of  corresponding  teletype  l/Skl 
19377/43,  see  .far  Diary,  Part  C,  Vol,  II  b„ 

Naval  Staff  has  forwarded  the  situation  assessment  of  Group 
North  Fleet  to  Armed  Forces  High  Command,  Operations  Staff,  Com- 
mander in  Chief,  Air  Force,  Operations  Stiff  and  High  Command, 
Army  General  Staff  of  the  Army,  with  the  comment  that  Naval  Staff 
concurs  but  that  a  connection  with  the  exercises  of  the  battle 
group  which  was  at  sea  from  4-6  Jul.,  is  not  to  be  excluded,, 
Copy  of  the  relevant  teletype  l/3kl  19328/43  Gkdos.  is  noted  in 
War  Diary  Part  C,  Vol0  II  a0 

Own  Situation: 

Due  to  the  enemy  situation  as  above,  coastal  alarm 
has  been  ordered  in  the  area  of  admirals,  Worth  and  West  Coast 
and  in  Oslo  Fjord,,   Convoys  in  the  West  and  North  coast  areas 
have  been  stopped 0 

The  battle  group  has  been  ordored  to  stand  by  at  3  hours  readi- 
ness© 

Three' submarines  have  been  stationed  off  the  Uestfjord  as  "Group 
Grau",  3  boats  as  "Group  La  Baume"  off  Trondheim  and  a  seventh 
boat  has  been  stationed  off  Bergen0 

On  7  Jul,,  small  forces  of  enemy  planes  were  reported  over  the 
areas  of  Vardoe,  /ialesound,  Bodoe,  Krakenes,  Stavanger  and  Eger- 
sundo 

Escort  services  comprised  41  northbound  ships,  42  southbound  ships 
and  1  submerine.  Nine  ships  were  held  up  awaiting  escort „ 

-91-  CONFIDENTIAL 


c:::.r::z:.~  jl 
8  Jul.  1943 

Meteorological  gzer  was   installed  on  the   ncreZ    3oast  of  Bear 
Isiar.i  b  rio  S29". 

17.*.        :.::r:rr^:,    "Z-Zeic    i:--.  Zr.t :-.-.-.:    :,     -  .l~i:    I;-.: 

-•  Ir.e~ y  iiiae~i:a: 

There  was  the   usual  consi  ipping  activity 

in  Kronstadt  ft         d    .round  the  islands.     According  to  a  Fin- 
als] ort,    a  submarine  which  had  £  lainaged  duri 

air   -    .    ck  on  La?   asari  on  7  Jul..  in  the  convoy  from 

Z  ever,  sari  tc   Kxonstadt.     ->noth.r  Finnish  report' states 

.-:  south  of  Tolbuchin  at  noon  on  5  Jul.,   probably  during 
bic-nd                    3    opereticase 

2.         )wn  Sifaiation: 

Lai  incidents  he  n  re  i  from  the 

area  of  CoTTrr.ndinr  .  -.    -  23  Baltic. 

One   Z7.Z  i-eeir.e  was  cleared  north  of  Svir.ee: ;::.::„ 

e   and  transport  service  throughout  t  eltic '  area  w 

cirri  .1  out  according  tc  plan   and  without  incident. 

1st  Motor  Zir.  r   Zlotilla  continued  sweeping  the    submarine 

lining  area  off  Hcnel* 

Both  !  soft!        Prina  Heinrich"  Battery  have  sunk  into 

bsoil.     Provisional  raising  will  lays. 

i    Z   Z.  _~5: 

17  Jua.,   Naval  CoEmaaeZ,    Baltic  submitted  a  statement  of 

its  views  on   :..     ju   stion   :f  coastal  defense  in  its  in  ec— 

cor  with  Fuehrer   erder  No,   43.     Armed  a  Conraand, 

mented  on  a.. is    st      .eient  on  2$   Jun.      Haval  Staff  Opere- 
ns  Divisicr.  .".  .    for   fin  Z  processing,    tc 

el  Staff,    ^uartenc  iter  Division  whose  office  is  competent 
in  1  r,  at  the  fci  ne   setting  forth  its  own  views   on 

the  s  r  Naval  Command,    Bale  in  respect  to  the 

E    ::    General  administration  Brueau,  Recruitment 

Div 

r  copy  of  '  *e  letters  with  the  Order  l/Skl  I  op  17635/43 

:   :  r  Diary,   Part  C,  Vol.  X« 

: 


-  z-  z.  r::z:  :z.z 


CONFIDENTIAL 
8  Jul.  1943 

10    Enemy  Situation: 

Nothing  to  report* 

2.    Own  Situation: 

Anti-submarine  activity  by  enemy  fighters  has  con- 
siderably increased  in  the  operational  area  of  Group  "Geier" 
and  in  the  Bay  of  Biscay0   Radio  Intelligence  intercepted  6 
attack  reports.  Air  attack  reports  have  been  received  from  3 
of  our  boats.   Two  boats  were  slightly  damaged.  The  third  pre- 
vented accurate  bombing  by   opening  fire;  a  hit  was  observed  and, 
while  the  boat  was  submerging,  a  parachute  was  seen  near  the  at- 
tacking plane  „ 

U  "267"  is  unable  to  submerge,  following  a  chase,  and  is  sailing 
from  CG  2212  close  in  to  the  coast.  For  assistance  operation  by 
destroyers  see  Situation  West  Area,  The  boat  has  been  ordered 
to  put  in  to  Ferrol  if  necessary. 

The  boats  of  Group  "Geier"  which  are  equipped  with  only  one  38mm 
machine  gun  have  been  given  permission  to  withdraw  if  enemy  air 
patrols  in  that  area  become  too  strong,* 

A  submarine  successfully  warded  off  a  low-flying  attack  with  bombs 
and  gunfire  in  DD  9475« 

No  reports  have  come  in  today  on  the  sinking  of  enemy  ships. 

VI.   Aerial  'Jar fare: 

1.    British  Isles  and  Vicinity: 

The  3rd  Air  Force  had  83  planes  in  operation  in  the 
West  area  and  7  in  the  Ilediterranean. 

In  the  Bay  of  Biscay,  a  Liberator  was  forced  by  8  JU  88  planes 
to  make  an  emergency  landing  on  the  water 0 

Enemy  air  activity  in  the  West  Area  was  only  slight  during  the 
day  and  was  limited  to  gunfire  attacks „ 

In  the  night  of  8  Jul.,  another  heavy  large-scale' raid  was  made 
on  Cologne,  According  to  reports  so  far  received,  only  6  of  the 
200  -  300  attacking  planes  were  shot  down  by  night  fight ersc 

Mines  are  again  suspected  in  the  Gironde  mouth  and  the  Brest  Area. 

2«    Mediterranean  Theater: 

-93-  CONFIDENTIAL 


CONFIDENTIAL  • 
8   Jul.  1943  ™ 

Our  Air  Force  continued  reconnaissance  flights  in 
spite  of  bad  weather  and  strong  enemy  defense. 

The  Italian  Air  Force  sent  out  torpedo  planes  against  an  east- 
bound  convoy  on  the  North  African  coast  and  probably  sank  2 
steamers  totalling  13,000  BRT. 

During  daylight,  the  enemy  continued  to  attack  airfields  in 
Sicily  losing  5  planes  by  anti-aircraft  fire  and  12  by  our 
fighter  defense,  Catania  was  attacked  twice  during  daylight 
and  a  third  time  in  the  night  of  8  Jul.  For  details,  see  Daily 
Situation. 

The  systematic  operations  against  Sicilian  airfields  definitely 

indicate  that  the  island  will  be  the'  first  target  of  a  probably  || 

imminent  attack „ 

3o    Eastern  Front: 

Strong  air  forces  were  engaged  in  support  of  the  Army 
operation  "Citadelle".  On  7  Jul.,  115  enemy  tanks  were  destroyed 
by  the  German  Air  Force  and  194  enemy  planes  were  shot  down  at  a 
loss  of  13  of  our  own. 

No  other  important  reports  have  been  received. 

Results  of  reconnaissance  by  5th  Air  Force  in  Northern  waters  are 
to  be  found  under  Enemy  Situation,  Northern  Waters o 


VII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

10    Enemy  Situation,  Mediterranean: 

According  to  an  Intelligence  report  from  a  so  far 
untried  source  in  Tangiers,  a  convoy  of  56  ships,  carrying  main- 
ly aircraft,  left  Baltimore  for  Casablanca  and  the  Mediterranean 
on  14  Jun0  The  escort  consists  of  50  warships  including  an  air- 
craft carrier,, 

On  the  evening  of  7  Jul.,  4  destroyers  entered  Gibraltar  from 
the  Atlantic. 

At  0230  on  %  Jul.,  Tangiers  reported  18  ships,  including  11  big 
troop  transports'  sailing  towards  the  Straits,  According  to  re- 
ports from  Ceuta,  the  formation  apparently  entered  directly  in- 
to the  Mediterranean, 

The  departure  of  3  hospital  ships  from  Gibraltar  to  the  Mediter- 
ranean and  the  arrival  of  another  hospital  ship  from  the  Atlantic 

-94-  COMFIDEHTIAL 


I 


CONFIDENTIAL 
8  Jul.  1943 

can  be  regarded  as  a  further  indication  of  an  early  start  of 
enemy  opera,  oions. 

Our  air  reconnaissance  in  the  Western  Mediterranean  reported,  at 
1415,  a  passenger  ship  of  12,000  BRT  sailing  east,  28  miles 
northeast  of  Bougie;  at  1425,  20  -  30' ships  on  a  southeasterly 
course  north  of  Cape  Bon;  and  at  1950,  10  ships  sailing  east 
near  Cape  Serret*. 

In  the  morning,  1  submarine  was  reported  south  of  Cagliari  and 
1  near  Cape  Ferro.  Three  other  submarine  positions  were  iden- 
tified in  the  afternoon,  west  and  southwest  of  Alghero  and  west 
of  l-iilazzoc 

No  sighting  reports  have  been  received  from  the  Eastern  Mediter- 
ranean,, 

According  to  Radio  Intelligence,  a  section  of  a  convoy  or  a  for- 
mation was  under  air  alarm  in'  the  Tunis  area  at  l620o  In  the 
afternoon,  Commanding  Admiral,  Mediterranean  Fleet  was  probably 
at  sea* 

2«    Own  Situation,  Mediterranean: 

All  vessels  of  3rd  Motor  Minesweeper  Flotilla  entered 
Empedocle  early  in  the  morning.  No  enemy  contact  was  made  during 
a  thrust  up  to  6  miles  southeast  of  Licata  but  strong  enemy  air 
activity  continued* 

At  1945  low  flying  fighter-bombers  made  a  heavy  attack  with  bombs 
and  gunfire  on  the  flotilla  barracks  at  Empedocle.  No  losses 
were  sustained  but  the  transfer  of  the  flotilla  is  under  con- 
sideration,, 

The  BRANDENBURG  and  the  P0MMERN  entered  Toulon, 
No  special  reports  were  received  on  the  activities  of  our  submarines. 

3*    Sea  Transport  Situation; 

The  steamer  VALVT0RITA  (3400  BRT),  enroute  from  Tar- 
anto  via  Messina  to  Salerno,  was  sunk  by  an  enemy  submarine  near 
Cape  Milazzoo 

4.    Area  Naval  Group  South: 

Aegean: 

according  to  a  report  from  Submarine  Chaser  2105 
escorting  the  BULG^RI..  and  the  steamer  LOULOUDjS  from  Salonika 
to  Piraeus,  the  LCUL0UDIS  was  damaged  by  a  mine  70  miles  south- 

-95-  CONFIDENTIAL 


f 


CONFIDENTIAL 
8  Jul.  1943 

southeast  of  Salonika  at  0430  and  is  being  towed  to  Oreos  Bay, 

The  Trikeri  channel  has  been  closed.   12th  Hot or  Minesweeper 
Flotilla  will  move  from  Salonika  to  Trikeri  to  confirm  and  clear 
the  newly  identified  barrage* 

At  0720,  "Q"-ship  GA  "41"  had  an  artillery  battle  with  an  enemy 
submarine  20  miles  north  of  the  Doro  passage.   Both  vessels  were 
•damaged.   It  is  uncertain  whether  the  enemy  ship  submerged  or 
was  sunk. 

At  1740,  another  enemy  submarine  bombarded  the  coast  in  Orshahi 
Bay  near  the  Statoni  mine. 

Otherwise,  convoy  and  transport  service  in  the  Aegean  was  carried 
out  according  to  plan  and  undisturbed 0 

Group  South  has  asked  for  the  immediate  assignment  of  a  tanker 
of  8-10,000  BRT  which  is  most  urgentljr  needed  to  replace  the 
tanker  I7ILHSLMSBURG  in  the  Aegean  supply  service.  The  Reich 
Commissioner  of  Maritime  Shipping  has  supplied  a  list  of  the 
tanker  tonnage  available  for  the  Aegean  (see  teletype  1025  and 
1310), 

In  reply  to  an  inquiry  from  Naval  Staff,  Group  South  reports 
that  the  appointment  of  German  liaison  officers  at  Valona, 
Durazzo  and  Prcvesa  in  addition  to  the  officer  at  Corfu,  would 
be  useful. 

Black  Seat 

Enemy  Situation; 

Nothing  to  report,, 

Own  Situation: 

In  the  night  of  7  Jul.,  a  group  of  1  PT  boat  and  2 
Motor  minesweepers  operating  off  Myshakov  made  contact  with  the 
enemy.  A  salvo  of  two  torpedoes  was  fired  unsuccessfully  against 
a  convoy  sailing  northeast.  Simultaneously,  the  motor  minesweepers 
fired  on  landing  stages.  Opposition  was  put  up  by  10  guard  ships 
off  the  coast  and  by  fire  from  the  land.  On  their  way  back,  the 
PT  boat  S  "40"  and  motor  minesweeper  R  "33"  collided  and  were 
slightly  damaged. 

No  special  events  occurred  at  the  2nd  Group's  waiting  position  20 

miles  northwest  of  Tuapse.   But  on  the  way  back,  PT  boat  3  "102" 

struck  a  mine  in  the  southern  exit  of  the  Kerch  Straits  and  was 

lost  with  8  men. 

_96~  CONFIDENTIAL 


CONFIDENTIAL 
8   Jul.  1943 

Neither  3rd  Group  nor  11th  PT  Boat  Flotilla  reported  any  par- 
ticular incidents* 

During  the  night  of  8  Juls,  the  Mariupol  patrol  position  will 
be  taken  up  by  naval  artillery  lighters  "l"-"311  as  scheduled. 
Naval  artillery  lighters  "8"-"llM  and  motor  minesweeper  R  "166" 
left  Kerch  to  bombard  the  fishing  harbor  of  Achuyov* 

Enemy  planes  attacked  Theodosia  at  1700  on  7  Jul«  One  coastal 
guard  ship  was  sunk,  1  landing  craft  and  1  submarine  chaser  were 
heavily  damaged  and  1  PT  boat  was  slightly  damaged*,  On  8  Jul,, 
unsuccessful  air  attacks  were  made  on  Ivanbaba  and  transport  ves- 
sels near  Mariupol  and  south  of  the  Kerch  Strait, 

All  the  other  convoy  and  supply  traffic  was  carried  out  without 
incident. 

VIII.  Situation  East  Asia: 

According  to  Domei,  it  was  announced  at  Headquarters  that, 
on  the  morning  of  5  Jul.,  3  enemy  warships  of  unspecified  type 
were  sunk  in  the  area  of  Kula  Gulf.   In  the  night  of  5  Jul.,  a 
Japanese  destroyer  flotilla  attacked  a "strong  enemy  formation 
sinking  1  cruiser  and  damaging  another,, 

On  the  other  hand,  allied  Headquarters  reported  that  6  Japanese 
vessels  were  probably  sunk  in  Kula  Bay  and  4  others  damaged,  A 
Japanese  destroyer  was  reported  beached  near  Sambera.  The  light 
cruiser  HSLENa  was  lost8   Heavy  air  battles  were  also  reported,, 

On  the  evening  of  6  Jul.,  U.  3.  surface  forces  bombarded  Kiska. 


9  Jul.  1943 

Items  of  Political  Importance: 

According  to  Reuter,  the  commandant  of  the  French  Battleship  RICHELIEU 
will  assume  command  of  the  ships  lying  in  the  French  West  Indies 
as  soon  as  the  French  Liberation  Committee  begins  to  administrate 
these  areas 0 

Conference  on  the  Situation  with  Chief.  Naval  Staff: 

10  Chief,  Naval  Staff  has  returned  from  Fuehrer  Headquarters  ■ 
after  reporting  to  the  Fuehrer,  For  his  notes  on  the  conference, 
see  l.Skl  2164  Gkdos.  Chefs t  in  war  Diary  Part  C  Vol.  VII. 


-97-  CONFIDENTIAL 


\ 


CONFIDENTIAL 
9  Jul.  1943 

In  a  highly  restricted  circle: 

II,  Upon  a  report  from  Chief,  Naval  Staff,  Operations  Division' 
concerning  Italian  rubber— transport  boats  (see  War  Diary  8  Jul.), 
Chief,  Naval  Staff  agreed  with  Naval  Staff's  opinion  that  the 
request  for  the  departure  of  the  last  2  boats  to  be  cancelled 
cannot  be  complied  with,  .  Cur  common  interest  in  the  operation 
must  be  made  clear  to  the  Italians  and  their  attention  must  be 
called  to  the  fact  that  no  early  improvement  in  the  transport 
submarines  situation  can  be  expected, 

III,  Chief,  Naval  Staff,  Quartermaster  Division  reported  that 
the  long  delay  in  repair  work  in  the  Aegean  area  was  due  mainly 
to  the  fact  that  no  foreign  exchange  was  available  for  buying 
the  material  at  hand.  The  Admiral,  Fuehrer  Headquarters  was  in- 
structed to  bring  this  situation  to  the  knov.rledge  of  Commander  ' 
in  Chief  Armed  Forces,  High  Command  or  the  Fuehrer  if  necessary, 
in  order  that  an  increased  allotment  of  financial  means  may  be 
provided o 

Special  Items: 

I.    Mine  requirements,  amounting  to  almost  60,000  mines  in  the 
4th  year  of  the  war,  are  nearly  twice  those  of  the  3rd  year  of 
the  war  and  nearly  three  times  those  of  the  1st  and  2nd  years 
of  the  war.  The  main  reason  is  the  large  demand  for  the  Medi- 
terranean area  and  our  change-over  to  the  strategic  and  tactical 
defensive  on  all  the  other  coasts  of  Europe  as  well.  Consequently 
reserve  stocks  are  now  completely  exhausted.   Front  line  require- 
ments can  now  only  be  met  in  accordance  with  current  production. 
This,  however,  is  limited  by  the  labor  situation,  raw-material 
quotas  and  industrial  capacity,  and  cannot  be  quickly  increased. 

Naval  Staff  has  therefore  informed  the  Group  Commands,  Naval  Com- 
mands and  German  Naval  Command,  Italy  that,  in  view  of  this  sit- 
uation, it  is  no  longer  justifiable  to  earmark  large  quantities 
of  mines  for  long-range  barrage  plans  or  to  stock  them  in  foreign 
countries,  Exceptions  can  be  made  only  for  areas  with  particu- 
larly unfavorable  and  complicated  transport  connections.  Since 
maintenance  of  the  mines,  and  especially  of  non-contact  mines 
is  difficult  in  foreign  territories,  the  various  commands  will 
first  use  the  stocks  and  reserve  stocks  in  their  areas,  for 
their  next  requirements,  A  list  of  all  mines  stored  in  the  area 
allotted  by  Naval  Staff  as  of  15  Jul.,  1943  will  be  submitted  to 
Naval  Staff  by  1  Aug.  in  order  that  "frozen"  stocks  may  be  re- 
leased.  In  addition,  estimated  mine  requirements  for  the  5th 
year  of  the  war  v/ill  also  be  reported  by  1  Atlg* 


_98-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1943 

II.   Naval  Staff,  Operations  Division  has  commented  on  the  sug- 
gestions made  by  the  Reich  Commissioner!  of  luaritime  Shipping, 
Deputy  for  German  Sea  Transportation  in  the  Mediterranean  with 
a  view  to  avoiding  delay  in  Aegean  supplies  (see  War  Diary  5 
and  7  Jul.)  and  forwarded  the  statement  to  Naval  Staff,  Quarter- 
master Division.  For  copy  of  this  statement  l/Skl  I  m  19369/43 
Gkdos.  see  War  Diary,  Part  C,  Vol,  XI 0 

Naval  Staff,  Operations  Division  agreed  to  the  appointment  of 
liaison  officers  to  act  simultaneously  as  liaison  officer  to 
Admiral,  Aegean  at  Corfu,  Valona,  Durazzo  and  Prevesa,,  Exten- 
sion of  the  authority  of  Admiral,  Aegean  to  Corfu  and  Valona 
would  endanger  the  chain  of  command  in  case  of  attack  which  had 
been  established  at  some  pains  in  the  Aegean,  and  would  not  on 
the  other  hand,  bring  about  any  material  imporvement  in  the  ship- 
ping turn-around  between  Italy  and  Greece  as  there  are  even  fewer 
German  than  Italian  forces  available  for  escort „ 

Situation  on  9  Jul„  1943  •' 

It.    War  in  Foreign  Waters: 

lo    Enemy  Situation: 

According  to  an  Intelligence  report  received  via 
Ostrov,  Canada  is  taking  direct  and  full  advantage  of  the  pause 
in  our  submarine  activities  in  the  Atlantic  to  expedite  ship- 
ments,, Any  shipping  space  that  can  be  laid  hands  on  is  being 
hurriedly  put  to  sea.  The  agent  thought  there  was  no  doubt  that 
a  considerable  number  of  the  outgoing  ships  x\rere  being  sent  unac-- 
companied  especially  since  the  whole  area  appears  to  be  adequately 
covered  by  air  patrols,  iiilitary  assistance  was  being  provided 
in  Canadian  and  U.  S.  ports  to  speed  up  loading  operations.  For 
details  on  the  shipments  see  telctj^pe  1812. 

2»    Own  Situation: 

Naval  Staff  has  informed  Ship  r,2o"  by  radiogram  1141, 
on  the  situation  in  the  Southwest  Pacific  and  the  CHARLOTTE  3CHLIE- 
MANK,  by  radiogram  1907,  on  the  successes  of  the  submarines  to 
which  she  has  furnished  supplies. 

II.   Situation  West  Area: 

1.    Enemy  Situation: 

Sixteen  planes  were  detected  in  bhe  area  of  19th 
Group,  At  0900,  the  convoy  Savage  reported  4  German  planes  near 


-99-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul,  1943 

Cape  St;   Vincent  and  at  0945*   that  they  had  made  an  attack. 
At  214S,   a  British  ship  was  located  in  BE  9490o     According  to 
our  air  reconnaissance,   there  were  2  destroyers  at  high  speed 
on  course  20°  in  BE  667O  at  0810  <,     At  0845,   a  convoy  of  ap- 
proximately 70  vessels,    including  merchant  men  of  up  to  10,000 
BRT,  was   sailing  at  medium  speed  on  course  20°  in  BE  6710o 

2.         Own  Situation: 

Atlantic  Coast; 

After  leaving  Pojak,   destroyers   Z  "24"  and  Z  "371' 
anchored  near  Buoy  "'20"  at  0U5  and  stood  by  with  minesweepers' 
at  g-hour  readiness  to  assist  submarine  U  "267'*o     As  this  boat, 
in  the  course  of  the  day,   reported  that  she  was  again  able  to 
submerge  the  two  destroyers  returned  at  1945.     The  GREIF  and  the 
FALKE  returned  to  Brest  at  0800  from  submarine  escort  duty 0     The 
submarine  "convoy  was  apparently  not  detected  by  enemy  air  recon- 
naissance t> 

In  accordance  with   instructions  Group  Uest  has  submitted  a  re- 
port on  operations  against  enemy  anti-submarine  forces  in  the 
Bay  of  Biscay-,     Copy  of  the  teletype  l/Skl  19495/43  Gkdos  is 
contained  in  War  Diary,   Part  C,  Vol,   lib.     The  Group  plans  to 
use  destroyers  as   soon  as  regular  enemy  anti-submarine  force  po- 
sitions,  definitely  within  the  destroyers'    radius   of  action, 
have  been  identified^      It  is  then  planned  to  ask  Air  Commander, 
Atlantic  to  provide  continuous   reconnaissance  particularly  in 
map  square  70  BF,   and  to  use  our  camouflaged  fishing  boats <, 
Furthermore,   when  regular  submarine  convoys  have  been  established 
the  Group  plans  to  send  out  destroyers  as  far  as  100  miles  west 
of  the  outer  points,   as  required,   if  anti-submarine  forces  are 
reported  while  the  destroyers  are  at  sea0 

Channel  Area; 

Escort  and  patrol  services  were   carried  out  according 
to  schedule,      A  low-level  attack  was  made  by  a  mixed  enemy  for- 
mation on  the  2nd  PT  boat  Blotilla  as  it  was  entering  Lezardieux. 
One  enemy  fighter  was  shot  down,,     Slight  damage  and  casualties 
were"  caused  on  some  of  the  boats  strafing*     For  short  battle  re- 
port,   see  teletype  2040 0 

One  plane  was  shot  down  during  the  air  attack  on  the   patrol 
boats  VP  "1501"  and  "1516"   off  Dunkirk  (see  Uar  Diary  8  Jul.) 
The   operation  planned  for  4th  and   5th  PT  Boat  Flotillas  in  Lyme 
Bay  was  cancelled  due  to  bad  weather.      Torpedo  boats  T  "24"  and 
T  "25"  moved  from  Cherbourg  to  St,   Malo  and  left  St,   Malo  for 
Brest  at  2200. 

-100-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1943 

III,  North  Sea,  Norway,  Northern  Waters: 

North  Sea: 

Four  ELM/J-mines  were  cleared  near  Ameland,  Terschelling 
and  Schiermonikoog,,  Escort  and  convoy  service  was  carried  out 
as  scheduled.  During  the  night  of  9  Jul.,,  mine  sweeping  had  to 
be  cancelled  and  the  patrol  positions  were  not  taken  up  because 
of  bad  weather.  Motor  minesweeper  R  "190M  and  R  "191"  moved 
from  Flushing  to  Calais o 

Norway,  Northern  Waters : 

10    Enenry  Situation: 

The  carrier  group  reported  on  6  Jul,,  was'  not  lo- 
cated again  by  our  air  reconnaissance,,  The  group  of  2  heavy 
cruisers  and  1'  destroyer,  was-  last  reported  at  0450  in  AE  2850 
on  a  westerly  course* 

At  1050,  our  mooring  positions  near  Kaafjord  were  definitely 
sighted  by  enemy  plane s„ 

Photographic  reconnaissance  of  Scapa,  at  an  unspecified  time,- 
revealed  the  presence  of  3  battleships,  1  carrier,  2  (apparently)  ' 
dummy  battleships,  2  heavy  cruisers,  4  (apparently)  light  cruisers, 
9  destroyers  and  other  vessels.  One  British  ship  was  located  in 
AE  7690  at  0221.,  Only  moderate  activity  by  16  planes  was  ob- 
served over  the  North  Sea  and  only  one  plane  was  detected  operat- 
ing in  the  area  of  the  Iceland  squadrons.  One  torpedo  boat  and 
2  merchant  men  as  well  as  2  patrol  boats  were  in  the  Seydisf jordo 

Group  North  Fleet  now  believes  that  the  enemy  measures  were  a 
reaction,  to  the  movement  of  our  battle  group  although  the  com- 
position and  undisguised  movements  of  the  enemy  formation  do 'not 
appear  to  indicate  a  definite  intention  to  engage  our  forces© 
Possibly,  however,  other  formations  may  have  been  at  sea  with- 
out having  been  detected*  In  any  case,  it  should  be  noted  that 
the  enemy  remained  close  to  the  German-occupied  coast  for- a  long 
time,  apparently  without  expecting  serious  counter-action,  which 
is  further  a  evidence  of  his  exact  knowledge  of  the  strength  and 
distribution  of  our  forces.   Accurate  assessment  of  the  enemy 
position  during  8  Jul*  was- difficult  because,  due  to  bad  weather 
and  technical  disturbances,  only  a  few  shadovting-re ports  on  the 
group  were  received  and,  even  on  the  afternoon  of  9  Jul.,  it  is 
still  uncertain  what  formations  were  .-  or  still  are  -  in  the 
area  between  the  Shetlands  and  Non-fay. 


-101-  CONFIDENTIAL 


CONFIDENTIAL 

9  Jul,  1943 

2„    Own  Situation: 

Group  North  has  detached  the  submarines  from  the 
assembly  areas  to  their  former  duties  and  is  putting  the  battle 
group  of  Commanding  Admiral,  Task  Force  at  six  hours  readiness 
for  transfer.  One  enemy  submarine  was  reported  in  the  southern 
part  of  the  Oslofjord,  Nine  boats  of  the  harbor  defense  flotil- 
la were  sent  out  on  submarine  chase.   The  submarine  report 
seems  uncertain. 

Twenty-two  ships  and  3  submarines  were  escorted  to  the  north 
and  20  ships  to  the  south.  Due  to  lack  of  escort  forces,  11 
ships  are  waiting  in  the  area  of  ..dmiral,  -jrctic  Coast0  ~ 

IV.  Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea: 

1*    Enemy  Situation: 

In  the  forenoon,  a  destroyer  was ' observed  on  gunnery 
practice  in  the  commercial  port  of  Kronstadt.  In  the  afternoon, 
11  planes  of  unspecified  type  landed  at  Seiskari.  Tug -traffic 
between  Kronstadt  and  Leningrad  and  patrol  service  in  the  waters 
around  the  island  were  normalc 

2.    Own  Situation: 

There  is  nothing  to  report  from  the  area  of  Com- 
manding admiral,- Defenses  Baltic,  Due  to  a  suspected  submarine 
in  the  Oslofjord,  the  motorship  ROLvND  convoy  was  held  at  Horten, 
.in  auxiliary  sailing  "vessel  struck  a  mine  and  sank  off  the  har- 
bor entrance  of  Tars. 

Investigations  made  by  Naval  Command,  Baltic  show  that  mine-ex- 
ploding vessel  "165"  was  exactly  on  the  prescribed  route  when 
she  struck  the  mine.  The  place  where  the  ship  was' lost  has 
been  swept  30  times  with  K.R.F.G0  and  G.B.T  sweeps,  and  10  times 
by  mine-exploding  vessels  escorting  and  2174  steamers  have 
passed  the  spot  since  28  Apr*,  the  date  of  the  last  mine  raids. 
It  is  assumed  that  it  must  have  been  a  special  mine  for  use  a- 
gainst  mine-exDloding  vessels.  For  brief  report  see  teletype 
143C 

No  special  reports  have  been  received  from  the  areas  of  Com- 
mander Minesweepers  Baltic  and  Admiral  Baltic  Countries. 

V.  Submarine  Warfare: 

1.  Enemy  Situation: 

-102-  OOIIFIDSHTLiL 


CONFIDENTIAL 
9  Julo  1943 

According  to  observations  by  U  "513"  coastal  traf- 
fic off  Rio  dc  Janeiro  follows  the  20  meter  line,  while  over-, 
seas  traffic  runs  between  the  40  and  200  meter  lines.   Many 
small  vessels  but  only  a  few  ships  were  observed  between  Rio 
and  Santos,  A  convoy  of  3  ships  with  1  destroyer,  1  corvette 
and  -during  daylight-  radar-equipped  air  escort  was  detected 
by  U  "508"  off  the  Gold  Coast 0 

2.    Own  Situation: 

U  "513"  sank  2  steamers  totalling  10,000  BRT  on  the 
Brazilian  coast, 

U  "618  and  U  "508"  sank  3  stdamers  totalling  25,000  BRT  half 
way  down  the  coast  of  Africa* 

Three  of  our  submarines  were  attacked  by  enemy  planes  in  the 
North  Atlantic  and  suffered  some  damage.  In  regard  to  U  "267" 
see  Situation  West  Area* 

According  to  a  report  from  Naval  Attache,  Madrid,  3  British  de- 
stroyers were  sighted  west  of  Cape  Finisterre  on  the  evening  of 
8  Jul,,  and  1  destroyer  off  the  approaches  to  Fcrrol  on  the 
evening  of  9  Jul,  It  is  possible  that  this  is "the  anti-sub- 
marine group  which  chased  and  attacked  U  "267". 

Five  submarines  in  the  Atlantic  have  been  ordered  to  new  oper- 
ational areas  in  ED,  EP  and  FB„  Two  more  submarines  must  be 
presumed  lost  while  returning  through  the  Bay  of  Biscay, 

Following  the  defection  of  the  Antilles  from  Vichy,  the. Direc- 
tives concerning  the  exemption  from  attack  of  French  naval 
forces  and  merchant  ships  in  the  Antilles  have  become  obsolete* 
Naval  Staff,  Submarine  Division  will  therefore  immediately  per- 
mit full  use  of  weapons.  For- copy  of  order  l/Skl  I  ce  19355/43 
Gkdos.,  see  War  Diary,  Part  C,  Volc  IV. 

VI.   Aerial  Warfare: 

British  Isles  and  Vicinity: 

3rd  Air  Force  had  110  planes  in  operation  in  the  West  area 
and  5  in  the  Mediterranean-, 

In  the  Channel  area  and  over  the  Netherlands,  4  enemy  planes 
wore  shot  down  during  the  day0 

In  the  afternoon,  8  Do  217  planes  made  a  harassing  raid  on  London 
dropping  bombs  on  the  southern  outskirts  of  the  town. 

-1 03-  CONFIDENTIAL 


::t:.  :    :..: 
9  Jul.  1943 

For  reconnaissance  results,    see  Enemy  Situation  West  Area  and 
Northern  Waters. 

Three  enemy  merchant  men  were  attacked  by  5  FW  200  planes  near 

3t.   Vincent.      C  .5  slightly  damaged.     One  Hudson  of 

the  strong  air  escort  was  shot  down.     Vfe  lost  one  plane. 

A  large  number  of  enemy  bomber  formations  under  fighter  pro- 
tection flew  over  Belgium  and  Northern  .:j  but  made  only  a 
few  attacks. 

During  the  night,   the  enemy  made  a  large  scale  attack  on  the 
Ruhr  district  concentrating,   this  time,    or.  Bochum.     Only  5  of 
the  200-300  attacking  planes  were  shot  down.      For   c  is  of 

damges,   sec  Daily  Situation* 

A.  die  ^rrer.-:  en  Theater: 

During  the  day,   the   en  s  numerous  attacks  en  the 

Sicilian  airfields  at  Trapani,   Sciacca,    San  Pietro,   Catania, 
and  Gerbini  as  well  as  on  Port-c  leaeedocle  and  Taormina.     Fifteen 

-  plants  were  shot  down  by  our  defenses.      ..t  Taormina,   the 
German  Air  Force  telephone  cen.ral  amongst  other  things  was  de- 
stroyed. 

2nd  Air  Corps   command  station  was  attacked  by  fighter-bombers 
and  Z|.-engined  planes  at  1230,   1615,    and  1800,   and  was  destroyed. 

In  the  Eastern  Mediterranean,   23  liberators  attacked  Mai ones 
airfield  on  Crete,   at  1533,  without  serious   effects,      Chree 
the  attacking  planes  were  ahot  down. 

own  planes  continued  reconnaissance.     ..bout   1630,   they  noted 
the  approach   :f  sarong  landing  formations   from  the  Malta  -  Pan- 
tell  eria  area  and  reported  5  convoys  north   of  Malta  totalling 
150  -  ISO  vessels  including  2  (probable)   battleships  on  a  north- 
northwesterly  course.      Further  numerous  reconnaissance  reports 
from  2nd  Air  Force  between  1810  and  2220,   confirm  the  first  im- 
pression that  the  enemy  is  launching  a  large-scale  landing  op- 
tion against  Sicily. 

I 13 tern  Front; 

On  8  Jul.,  119  eneny  planes  were  shot  down  on  the  Army 
front  as     .est  8  of  our  own.  For  reconr.ei33a.ace  activities 
of  5th  .-ir  Force  sou  Situation  in  Northern  Aatcrs.  Ther^  was 
Le  ectivity. 

-104-  :,:.f:z-e:ti.,l 


9  Jul,  CONFIDENTIAL 

VII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

1„    Energy  Landing  in  Sicily: 

In  the  central  Mediterranean,  our  air  reconnais- 
sance observed  the  approach  of  very  strong  landing  formations 
from  the  Malta  area  and  Tunisian  ports  apparently  making  for 
Sicily*   In  addition  to  the  already-mentioned  formations  of 
150-180  ships  north  of  Malta,  at  1925,  a  group  of  40  ships  was 
reported  in  CN  3441  on  course  340°  with  3  cruisers  ahead  and  2 
cruisers  astern  and  a  remote  escort  of  4  probable  battleships 
on  the  east  flank.   Furthermore,  a  formation  with  3  cruisers 
heading  a  convoy  of  45  ships  followed  by  3  large  vessels  pos- 
sibly carriers  was  reported  off  the  north  end 'of  Grosso0  All 
these  formations  were  sailing  north -nor thwest«  The  exactitude 
of  these  reports  is  still  uncertain.   In  many  cases,  the  ob- 
servations were  made  by  fighter  pilots  inexperienced  in  recon- 
naissance r     Destruction  of  the  telephone  connections  and  of  the 
2nd  /iir  Force  command  station  have  made  it  difficult  to  form 
an  immediate  picture  of  the  new  situation,, 

At  1950,  a  convoy  of  7  freighters,  8  tankers  and  2  destroyers 
was  reported  leaving  Bone  in  the  direction  of  Sicily,  At  2010, 
1  cruiser,  2  destroyers,  25  (apparently)' LCT  and  2  freighters 
were  reported  north  of '  Tabarcac  At  2220,  Sjracusc  was  bombarded 
from  the  sea.  At  2350,  parachute  landings  near  the  San  Pedro 
airfield  and  the  destruction  of  the  radar  location  set  at  Cape 
Passero  were  reported,,  At  2400  it  was  reported  that  a  large 
convoy  was  approaching  the  southern  coast  of  Sicily  15  miles 
south  of  Licata  and  that  a  smaller  formation  was  close  into  the 
coast  between  Vittoria  and  Gcla» 

All  the  reports  sent  by  2nd  Air  Force  to  Commanding  General,  • 
Southeast,  and  via  German  Naval  Command,  Italy  to  Naval  Staff, 
confirm  the  impression  that  the  enemy  has  begun  an  extensive 
invasion  of  Sicily.   There  are  so  far  no  indications  of  simul- 
taneous operations  against  other  objectives.  From  the  ship  * 
movements  so  far  observed  between  Malta,  Tunisia,  and  Sicily, 
Naval  Staff,  Naval  Intelligence  Division  estimates  that  about 
50  LST  and  150  LCZ  or  LCJ  are  taking  part.  This  would  be 
enough  to  carry  a  first  wave  of  about  8  U.  S,  landing  divisions 
or  about  5o  British  landing  divisions.  The  number  of  LSJ  in- 
volved is  unknown,  .'.bout  70  LST  and  350  LOT  or  LCJ  are  still 
available  for  other  operations.   This  means  that  there  are  still 
enough  landing  facilities  available  for  another  operation,, 

The  only  information  that  has  reached  Naval  Staff  in  regard  to 
defense  measures  by  the  Italian  Navy  is  that  orders  have  been 
given  to  blow  up  the  harbor  facilities  at  Empcdoclo  and  Licata 


C-v  o 


-IO5-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1943 

Seven  boats  of  3rd  FT  Boat  Flotilla  put  out  from  Empcdocle  at 
2245  for  a  breakthrough  towards  the  cast  to  -aigusta.  The  flo- 
tilla was  ordered  to  take  action  against  enemy  forces.   7"th 
PT  Boat  Flotilla  is  still  in  Cagliari  at  immediate  readiness. 
Torpedo  boat  TA  "10"  has  left  Corfu  for  Catania  at  0930. 

At  the  end  of  the  day  it  is  still  hard  to  form  a  clear  picture 
of  the  energy's  detailed  intentions.  However,  the  outstanding 
objections  are  the  coasts  in  the  Syracuse  -  Cape  Passero  and 
Gela  -  Licata  arcas0  There  are  no  special' indications  of  an 
attack  on  the  western  coists  of  the  island. 

Naval  Staff  has  briefly  advised  Group  South,  Admiral  Aegean 
and  Groups  North  and  West  on  the  situation. 

(Tr.  N, :  the  following  passage  is  added  in  hand  writing:  Note 
of  Chief  of  Staff.  Naval  Staff:  Enemy  movements  at  sea  and 
preliminary  air  attacks  indicated  that  the  enemy  would  land  on 
the  south  and  southeast  coasts  of  Sicily.   It  is  not  known  whether 
the  Army  took  steps  to  move  troops  from  Central  Sicily  on  that 
account,  but  it  must  be  presumed  that  they  did  soe) 

At  last  the  situation  is  clarified  and  the  enemy's  plans  in  the 
Mediterranean  revealed.  Although  the  weekly  report  of  7  Jul,, 
from  German  Naval  Command,  Italy  indicated  that  the  supply  sit- 
uation in  Sicily  was  inadequate  and  the  mine  defense  of  the 
island  little  improved,  nevertheless  the  battle  which  is  now 
beginning  holds  infinite  possibilities.   If  the  landing  were 
successfully  opposed  or  if  capture  of  the  island  could  be  pre- 
vented for  a  long  period  with  all  the  consequent  risks  for  the 
troops  and  their  supplies,  the  operations  would  acquire  an  im- 
portance far  in  excess  of  their  purely  local  value.  Although 
the  main  burden  of  the  fighting  will  lie  with  the  -*rmy  and  the 
Air  Force,  there  will  be  ample  opportunity  for  the  Italian  Fleet 
and  the  -  unfortunately  -  weak  German  naval  forces  to  contribute 
most  effectively  towards  a  general  success  by  an  all-out  effort. 
The  steps  just  taken  by  Chief,  Supply  and  Transport,  Italy  to 
ensure  the  supply  of  the  island  are  an  essential  condition  of 
the  building-up  and  maintainancc  of  its  defensive  power.  They 
will  now  be  tested  in  the  most  difficult  circumstances.  The 
offensive  spirit  of  submarines  and  PT  boats  must  be  aroused  to 
the  utmost.  Their  efforts  will  be  rewarded  by  success  in  battle 
and  the  example  they  set  to  the  allied  Italian  Navy.  Naval 
Staff  is  resolved  to  achieve  the  utmost  with  the  forces  avail- 
able o 


-106-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1.943 

2„    Enemy  Situation  elsewhere  in  Mediterranean: 

At  2300,  a  convoy  of  19  freight oro  with  2  destroy- 
ers and  3  escort  vessels  left  Gibraltar  for  the  west, 

according  to  an  intelligence  report  from  Greece  dated  7  Jul., 
the  further  postponement  of  the  landing  attack  has  greatly 
s.h-iken  the  confidence  of  many  Greek  officers  in  the  British. 
Prince  Peter,  who'  was  sent  for  the  purpose  by  the  King  of  Greece 
has  stated  that  the  attack  will  be  made  at  the'  end  of  Jul.  and 
will  not  be  postponed  again. 

This  report  is  of  importance  only  in  that  it  refers  to 
the  possibility  of  landings  in  the  Greek  area. 

According  to  other  intelligence  reports  of  7  Jul.,  from  Cairo 
via  Athens,  2  battleships  and  1  aircraft  carrier  arrived "at 
Alexandria  on  6  Jul.  More  information  is  being  obtained. 

An  Intelligence  report  from  de  Gaullist  sources  in  Marseille  . 
states  that  the  leader  of  the  resistance  movement  in  the  Depart- 
ment Alpcs  -  Maritimes  has  ordered  all  chiefs  to  hold  them- 
selves in  readiness  for  the  Anglo— American  attack  xvhich  will 
take  place  between  10  and  15  Jul,  (Sec  teletype  0100)o 

The  Japanese  Naval  Attache  reported  at  noon  that,  according  to 
a  reliable  Japanese  source,  4  U.  S.  battleships,  including  one 
of  45,000  BRT  and  3  carriers  with  several  light  units  have  left 
various  bases  in  the  USA  for  the  Mediterranean.  The  fleet's 
mission  is  to  perform  new   operations  in  the  Mediterranean.  Un- 
fortunately, no  times  are  specified. 
■ 

In  the  Eastern  Mediterranean  one  of  our  planes  reported  at  0105 
that  it  had  located  several  ships  60  miles  north-northwest  of 
Alexandria. 

3.    Own  Situation  elsewhere  in  the  Mediterranean: 

Naval  Attache,  Rome  has  reported  as  of  7  Jul  on  a 
conference  held  at  Rome  on  21  Jun.,  at  the  invitation  of  the 
Reich  Commissioner  of  Maritime  Shipping,  at  which  the  question 
of  procuring  transport  tonnage  for  military  purposes  in  the 
Italian  area  teas  discussed.   The  Reich  Commissioner's  Deputy 
for  German  Sea  Transportation  summarized  the  opinions  expressed 
by  the  participants,  as  follows: 

Forthcoming  transport  tasks  in  the  Mediterranean  will  have  to 
bo  performed  by  the  big  ships  available  in  the  Mediterranean^ 

-107-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1943 

It  is  impossible  to  bring  in  ships  from  outside.  Furthermore 
there  is  a  .Fuehrer  order  that  400,000  tons  of  French  shipping 
is  to  be  turned  over  to  Italy..:..  :.0ne  hundred  and  thirty- five 
thousand  tons  of  this  shipping  is  still  in  France.  Commanding 
General,  South' s  request  that  the  German  supply  service  to  the 
Italian  islands  be  performed  exclusively  by  German  ships,  even 
after  increasing  the  number  of  German  troops  to  be  transported 
to  the  islands,  can  best  be  complied  with  under  the  following 
conditions: 

1«    Italian  and  German  supply  traffic  and  there— 
hence,  Italian  and  German  shipping  to  be  handled  as  a  single 
unit0 

2c  Transport  to  Sicily  of  civilian  supplies  to 
be  reduced  by  evacuating  the  population  as  far  as  possible 

3 ■    The  supply  requirements  of  the  recently  in- 
creased number  of  German  divisions  on  the  island  can  not  be 
filled  by  the  German  shipping  on  hand, 

4o    The  possibility  of  improving  the  supply  ser- 
vice by  taking  over  more  Italian  small  shipping  must  be  ex- 
amined.  In  1938  there  were  2,300  small  ships  of  50-500  tons  of 
which,  as  far  as 'we  know,  500  have  so  far  been  requisitioned  by 
the  Italian  Navy* 

In  Naval  Staff's  opinion,  it  is  unlikely 
that  Point  1„  can- be  complied  with. 

The  Reich  Commissioner  of  Maritime  Shipping  came  to  the  fol- 
lowing decision: 

The  transport  demand  must  be  adapted  to  existing  transport  facil- 
ities.  It  is  to  be  assumed  that  after  a  few  weeks  of  intensive 
enemy  air  attacks,  wc   shall  no  longer  be  able  to  handle  the  Ger- 
man supply  service  to  the  islands  with  the  German  ships  on  hand„ 
The  total  tonnage  can  be  increased  by  taking  administrative  and 
technical  steps  to  expedite,  the  repair  of  about  300,000  tons  of 
shipping  now  in  the  Italian  dockyards.   Therefore,  in  view  of 
the  present  transport  situation, 

1*  no  more  ships  will  move  to  the  Eastern  Med- 
iterranean* Ships  now  en  route  to  the  Aegean  will  proceed  to 
their  destination. 

2»  The  Reich  Commissioner  will  try  to  obtain  a 
Fuehrer  order  suspending  the  delivery  of  French  ships  to  Italy. 


-108-  CONFIDENTIAL 


V 


^ 


CONFIDENTIAL 
9  Jul.  1943 

3.    Ways  and  means  of  speeding  up  the  repair  of 
the  300,000  tons  of  shipping  in  Italian  dock-yards  oust  be  in- 
vestigated. 

Point  lo  is  already  superseded.  The  report  on  the  conference 
was  delayed  because  the  minutes  promised  by  the  Reich  Com-' 
missioner  of  Maritime  Shipping  did  not  reach  Naval  Attache, 
Rome  until  3  Jul* 

German  Naval  Command,  Italy  weekly  report  1-7  Jul.,  states  in 
part:  Unloading  in  Sicily  10,000  tons,  daily  average  1,200  tons, 
maximum  for  one  day  4, 220  tons*  Mostly  fuel.  Ferry  traffic  in- 
cluded 9,712  men,  1,300  motor  vehicles,  40  tanks,  50  guns*  In- 
setting up  14  landing  places  on  each  side,  traffic  with  boats 
of  all  lengths  ran  smoothly.  No  damage  or  casualties  were  caused 
by   air  attacks.  The  train  ferry  carried  1200  tons  per  day. 

Nearly  all  convoys  were  detected  by  enemy  air  reconnaissance. 
The  cooperation  between  attacking  planes  and  submarines  is 
noteworthy.  Considerable  submarine  danger  exists  in  the  area 
between  Corsica,  Elba  and  the  mainland.   The  lack  of  submarine- 
chasers  is  strongly  felt* 

Of  the  original  16  vessels  of  22nd  Submarine  Chaser  Flotilla,  6 
were  lost  between  6  Mar*  and  23  Jun.  1943,  four  by  submarine 
attack  and  two  by  air  attack. 

Only  a  small  number  of  Italian  corvettes  is  ready  for  action,, 

The  supply  service  to  Corsica  was  good,  to  Sardinia  satisfactory 
and  to  Sicily  inadequate.  Railroads  in  Sardinia  are  short  of 
coal.  As  no  trains  have  arrived,  the  fuel  situation  is  serious 
in  Sicily  and  unsatisfactory  in  Sardinia,,  The  turn-around  of 
Italian  ships  is  much  slower  than  that  of  German  ships  due  to 
slow  discharge. '  Italian  troop  transports  Brindisi  -  Patras  so 
far  undisturbed,  Harbor  performance  has  been  declining  since 
the  evening  of  6  Jul.  due  to  bad  weather.  Lack  of  coastal  ves-  ■ 
scls,  particularly  in  Italy,  Shortage  elsewhere  of  tugs,  barges, 
dredgers,  cranes.  Unloading  squads  at  ports  must  be  increased. 
"Seeschlange  Palau"  (Tr.N.  a  type  of  floating  conveyor  belt  for 
unloading)  proved  extremely  useful.  A  daily  unloading  perfor- 
mance of  910  tons  was  reached.   Two  or  three  more  "Seeschlange" 
are  required.  At  Orosei,  naval  landing  craft  and  TKP  (Tr.N„ 
tanker-barges?)  were  unloaded  for  the  first  time.  Improvements 
are  being  made, 

The  German  defense  forces  arc  ready.  Four  fast  escort  vessels, 


-109-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1943 

2  torpedo  beats,  4  submarine  chasers,  5  motor  minesweepers  of 
Italian  origin  are  in  service  mostly  in  the  Greece  supply  traf- 
fic o  No  big  ships  have  cone  from  the  repair  shops.  Their 
number  has  decreased  due  to  the  Aegean  transfers*  Replacement 
by  small  vessels  is  inadequate,,  Naval  artillery  lighters  with- 
out guns  proved  useful  in  the  Massina  Straits  ferry  traffic, 
A  large  number  of  barges  and  lighters  are  still  at  Marseille 
and  Toulon  due  to  lack  of  crews  or  repairs » 

On  the  western  coast  of  Sardinia  mine  defense  has  been  im- 
proved, in  Sicily,  only  slightly „   (See  teletype  2035) » 

German  Naval  Command,  Italy  asked  for  the  allotment  of  410 
EMC -mines  from  Toulon  to  reinforce  the  barrages  in  Cagliari 
Bay*  Naval  Staff  has  advised  that  no  more  mines  can  bo  de- 
livered before  the  end  of  Aug.  as  stocks  at  home  are  exhausted 
or  destined  for  the  Aegean.   Therefore  the  necessity  to  rein- 
force the  barrages  in  Cagliari  Bay  should  be  carefully  reexamined. 

It  is  most  regrettable  that  our  mat oriel  position 
compels  such  restrictions  at  this  critical  moment, 

4.  Sea  Transport  Situation: 

Convoy  traffic  was  carried  out  according  to 
plan  and  without  incident, 

5.  Area  Naval  Group,  South: 
Aegean: 


With  reference  to  the  artillery  duel  between 
GA  "41"  and  an  enemy  submarine  a  further  report  states  that 
15  -  8,8  cm  hits  and  many  hits  by  anti-aircraft  guns  were  scored 
on  the  enemy  boat  -whose  conning  tower  and  guns  were  destroyed 
and  set  on  fire.  Destruction  of  the  submarine  is  questionable. 
Four  ships  and  4  planes  were  sent  out  on  submarine  hunt. 

On  8  Jul,,  an  auxiliary  sailing  vessel  was  sunk  by   an  enemy  sub- 
marine north  of  Skyros,  At  0124  and  0315  on  9  Jul,,  air  recon- 
naissance reported  an  enemy  submarine  west  of  Lemnos.  According 
to  an  Italian  report,  an  enemy  submarine  was  sighted  east  of 
Syr a  at  0310o 

The  report  that  the  steamer  L0UL0UD:~lS  struck  a  mine  may  be  mis- 
taken, as  a  torpedo  track  is  alleged  to  hive  been  observed, 
Mine swooping  at  the  spot  by  4  boats  of  12th  Iiotor  Minesweeper 
Flotilla  has  so  far  been  unsuccessful. 


-110-  CONFIDENTIAL 


- 


CONFIDENTIAL 
9  Jul.  1943 

The  nine  project  for  the  Aegean,  announced  by  Group  South, 
has  new  been  .received,  Priority  "1"  is  assigned  to  the  bar- 
rages east  of  Crete  and  on  the  west  coast  of  Greece  from  Corfu 
to  the  southern  end  of  the  Peloponncsc.  Reinforcement  of  the 
defense  of  Patras  and  three  barrages  off  Gythion,  the  rein- 
forcement of  Nauplia,  defense  of  the  Gulf  of  Mirabel  la  bar- 
rages in  the  northern  Sporades,  the  barrage  project  south  of 
Lcmnos  and  the  new  barrage  G  10  are  given  Priority  "2",' 

Priority  "3"  is  provided  for  the  reinforcement  of  the  defenses 
of  the  Gulf  of  Athens,  the  defenses  of  Porto  Kufo  and  the  outer 
Gulf  of  Salonika,  Priority  "4"  is  assigned  to  the  barrage  pro- 
jects off  the  south  coast  of  Macedonia,  reinforcement  of  the 
East-West  Line,  and  mining  of  the  Dardanelles  in  case  of  emer— 
gcncy0 

Naval  Staff  has  approved  in  principle  the  plans  for  Priority 
"1",  The  reason  for  use  of  EMF-mincs  in  barrages  G  71  and  72 
is  not  clear.   The  mines  required  have  been  allotted;  the  EMC, 
EMF,  EM  and  lMA__mincs  will  be  delivered  within  July;  the  UMB- 
mincs  will 'be  delivered  in  two  monthly  instalments  starting  in 
mid-August,, 

Assessment  of  the  overall  barrage  plan  is  difficult,  due  to 
lack  of  detail  on  the  intended  depth-settings e  Group  South  has 
been  ordered  to  furnish  a  supplementary  report  on  this  subject. 
Other  details  in  regard  to  mine  types,  priorities,  ctc0  will 
be  settled  by  vcrbaly  discussion,,  The  execution  of  the  plans 
can  be  regarded  only  as  a  long-term  project  as  the  allotment 
of  mines  is  dependent  on  new  production,,  After  the  Priority 
"1"  mines  have  been  delivered,  monthly  deliveries  may  be  esti- 
mated as  follows: 

Up  to  300  EMC-mincs 
250  EMF-mincs 
150  EMR-mincs 
200  IJMB-mincs 
100  UMA-minos 

In  reply  to  an  inquiry,  Admiral  Aegean  reports  that  it  is 
planned  for  DRACHS  and  BULGARIA  to  lay  a  double-line  angle- 
patterned"  mine  field  off  the  approach  to  Argostole  probably 
on  10  Jul, 

Black  Sea: 

Enemy  Situation: 

According  to  an  intelligence  report,  dated 

-111-  CONFIDENTIAL 


COKTIDEUTIAL    . 
9  Jul.  1943  ~ 

12  June,    from  a  new  agent  in  Madrid,   diplomatic  circles  be- 
lieve that  a  big  ^.nglo-American  naval  operation  is  planned 
towards  the   Black  Sea  in  the  direction  of  Roumania  -  Bulgaria. 
Tlie  following  naval  forces  arc  .said  to  be  concentrated  for  that 
purpose  in  the  Eastern  Mediterranean:    5  battleships,    including 
2  U.    3.   battleships  which  entered  the  Mediterranean  at  the  be- 
ginning of  Jun.,    8  aircraft  carriers,   20  cruisers   and  50  de- 
stroyers. 

The   landing  of  Anglo -American  forces  would  be  supported  by- 
Russian  troops   from  Baku* 

This  report  certainly  requires  investigation. 
Such  an  operation  would  necessitate  prior 
clarification  of  Turkey's  attitude 0 

Own  Situation: 

During  the  night  of  8  Jul.,  Atchujev  was  bom- 
barded by  Naval  Artillery  Lighters  "8"-"H".   The  vessels  will  ' 
be  out 'of  operation  for  several  days  due  to  engine  and  gun 
damage. 

According  to  a  report  from  the  port  captain  at  Novorossisk,  8 
enemy  vessels  were  driven  off  by  gun  fire  at  2200  on  7  Jul,  An  ' 
explosion  was  observed  during  the  action  and,  on  8  Jul.,  a  wreck, 
probably  caused  by  a  mine  in  the  barrage  south  of  Sutchuk  was 
found  southeast  of  the  landing  place 0 

Submarine  D  "19"  started  from  Theodosia  on  her  way  back  to 
Constant za. 

Four  AT-mines,  type  M  26,  were  cleared  in  the  Kertch  Straits 
at  the  spot  \-iherc   PT  boat  S  "102"  was  sunk. 

The  ijaapa  transports  were  carried  out  under  minesweeper  escort „ 
The  supply  and  convoy  traffic  wont  according  to  schedule 0 

Operations  by  4  boats  of  1st  PT  boat  Flotilla  against  enemy 
supply  traffic  between  Idokopas  and  Tuapse  are  planned  for  the 
night  of  9  Jul. 

The  Black  Sea  ship-building  program  submitted  by  Group  South 
(see  War  Diary '29  Jun.)  has  been  examined  by  Naval  Staff  Opera- 
tions Division*  The  request  for  continued  construction  of 
armed  fishing  vessels  has  been  approved,'  Construction,  of  these 
vessels,  which  was  begun  by  High  Command,  Navy,  Naval  Construc- 
tion Division,  must  be  advanced  by  all  means,  -s  steps  taken 


-112-  CONFIDENTIAL 


CONFIDENTIAL 
9  Jul.  1943 

so  far  have  not  produced  any  visible  effect,  other  more  ef- 
fective "ways  and  means  must  be  found  particularly  of  achieving 
-:spcedy  and  safe  deliveries  of  material* 

In  regard  to  minesweeper  construction,  Naval  Staff,  Operations 
Division  considers  that,  in  view  of  the  increasing  threat  to 
building  yards  on  the  German  and  European  coasts,  minesweeper 
construction  in  the  Southeast  area  should  also  be  developed  by 
all  possible  means 0 

The  fitting-out  of  more  war  freighters  as  submarine  chisers  is 
inadvisable  in  vicx^  of  the  lack  of  transport  shipping.  It  ap- 
pears necessary  to  reconsider  Group  South 's  previous  requests 
to  build  no re  transport  tonnage  in  the  form  of  war  freighters. 
The  request  for  &   armed  fishing  vessels  of  larger  si zo  with  a 
speed  of  12  knots,  stronger  armament  and  increased  sea-worthi- 
ness has  been  approved,,  If  engine  production  permits^  all 
present  types  should  be  replaced  by  the  larger  type. 

The  group's  other  requests  in  regard  to  allotment  of  18  PT  boats 
and  20  motor  .minesweepers  as  well  as  18  naval  artillery  ferry 
barges  cannot  at  present  be  met  as  all  possibilities  are  exhausted 
Nor  is  it  possible  to  alter  in  Group  South1 s  favor  the  distribu- 
tion of  new  ships  coming  into  service  between  now  and  autumn, 
as  it  is  only  possible  to  fulfil  the  most  urgent  requirements 
in  all  areas. 

Naval  Staff,  Quartermaster  Division  will  be  advised  of  this 
statement  by  Naval  Staff,  Operations  Division  and  requested 
to  instruct  Group  South  accordingly,  if  necessary  by  provision- 
al directive,  if  the  matter  is  found  to  require  prolonged  ex- 
.  amination. 

VIII.  Situation  East  ^sia: 

Naval  Attache,  Tokyo  has  submitted  the  following  informa- 
tion: 

On  1  July,  the  enemy  landed  first  15  and,  later,  9  more  heavy 
guns  at  Rendova  and  is  bombarding  Munda  with  them.  The  landing 
at  Viru  (southern  part  of  the  main  island  of  New-Georgia)  on 
30  Jun.  was  also  successful.  An  American  airfield  is  under 
construction  there.       ~  J 

During  the  night  of  4  Jul.,  the  Japanese  tried  to  land  from 
destroyers  on  the  southern  end  of  Kulembangara .  The  landing 
attempt  was  given  up.  During  the  battle,  the  American  destroyer 


-113-  CONFIDENTIAL 


confidential 

9  Jul.  1943 

STRONG  was  sunk.   The  operation  was  repeated  with  10  destroyers 
on  the  night  of  5  Jul,,  and  an  engagement  took  place  with  3 
American  cruisers  and  10  destroyers  in  the  Gulf  of  Kula,   The 
HELENA  and  1  destroyer  were  sunk*  One  Japanese  destroyer  ran 
ashore  and  a  second  was  heavily  damaged.  The  landing  was  en- 
tirely successful 

About  4,000  Americans  from  Rendova  have  landed  about  20  kilo- 
meters east  of  MuncUu  A  large  jungle  area  lies  between  them 
and  Kunda, 

Both  sides  have  lost  many  men  due  to  fever.  Every  effort  will 
be  made  to  hold  Munda,   If  unsuccessful,  the  troops  will  fall 
back  on  Bougainville  -which  as  a  keystone  of  the  advanced  de- 
fenses, is  fortified  as  strongly  as  Rabaul, 

Naval  Attache,  Tokyo  has  submitted  an  exhaustive  report  on  the 
statements  made  by  prisoners  from  the  U.S.  submarine  GRENADIER, 
An  interesting  point  is  that  U.S.  submarines  arc  able  to  release 
oil,  spars  and  pieces  of  cloth  through  torpedo  tubes  for  the 
purpose  of  deceiving  the  enemy*  The  east  coast  of  Japan  from 
Shanghai  to  Hokkaido  is  divided  into  ten  zones  of  operation 
each  of  which  is  patrolled  as  continuously  as  possible  by  one 
submarine a 

U.  S.  submarines  are  usually  in  operation  for  80  days  between 
leaving  and  returning  to  port.  On  the  GRENADIER,  7  officers 
and  two-thirds  of  the  crew  had  had  submarine  training  courses 
while  one  officer  and  one-third  of  the  crew  had  not. 

Submarine  losses  are  higher  than  have  been  admitted  and  are 
thought  to  amount  to  certainly  over  30  boats.   Routine  over- 
haul of  the  boats  is  done  on  the  west  coast  every  15  months. 
Firing  is  done,  if  possible,  by  periscope  observation,  but, 
if  necessary,  can  be  done  by  hydrophone  location.  As  torpedoes 
are  fired  with  a  depth  setting  2-3  feet  below  the  presumed 
draft  of  the  target,  magnetic  ignition  is  likely. 


10  Jul.  1943 

Items  of  Political  Importance: 

According  to  an  Exchange-Telegraph  report,  a  joint  statement 
by  the  British  and  U.S.  Governments  has  been  published  in  Lon- 
don and  Washington  en  the  future  methods  to  be  adopted  in  re- 
rting  on  submarine  warfare, 

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CONFIDENTIAL 
10  Jul.  1943 

Roosevelt  and  Churchill  are  said  to  be  concerned  at  the  great 
number  of  statements  made  by  public  officials  on  the  anti-sub—  - 
marine  campaign.  By  putting  together  parts  of  these  statements, 
the  enemy  would  be  able  to  assemble  more  information  than  was 
desirable*,  It  has  therefore  been  agreed  thr.t  a  statement  ap- 
proved by  Roosevelt  and  Churchill  will  be  issued  on  the  10th 
of  each  month.  The  first  monthly  statement,  for  the  month  of 
June,  states,  amongst  other  things,  that: 

1.  In  June,  losses  of  Allied  and  neutral  shipping  due 
to  submarines  were  the  lowest  since  the  USA  entered  the  war, 

2.  The  number  of  axis  submarines  sunk  was  consider- 
able and  satisfactory. 

3%    As  a  result  of  German  submarine  losses  in  May,  the 
main  trans -at lantic  convoys  have  been  practically  unmolested. 

4.  There  has  been  a  big  net  increase  in  Allied  merchant 
ship  tonnage  each  month  during  this  year.  Anti-submarine  planes 
and  ships  have  been  continuously  coming  into  service. 

according  to  Reuter,  British  aircraft  production  has  been  con- 
centrating on   heavy  bombers,  fighters  and  the  so-called  "tank 
crackers".  Heavy  bomber  production  was  trebled  during  last 
year.  The  Minister  for  Aircraft  Production,  Cripps,  has  an- 
nounced an  intensification  of  British  aerial  warfare  which  may 
begin  at  any  moment. 

According  to  the  Exchange  Telegraph,  Mr.  Hull  has  announced  that 
the  State  Departnent  will  shortly  issue  a  statement  on  the  new 
regime  in  Martinique.  The  Martinique  problem  will  be  dealt  with 
in  relation  to  recognition  of  the  French  Liberation  Committee. 
Giraudfs  visit  to  Washington  is  said  to  be  cf  a  purely  military 
nature e 

Reuter  rep  rts  that  on  9  Jul.  military  circles  in  Washington 
have  stated  that  diversionary  operations,  within  the  frame- 
work cf  the  Allied  strategic  plan,  would  be  launched  in  about 
30  days  for  the  purpose  of  weakening  the  German  offensive  in 
Russia.  The  Allied  Supreme  Command  felt  it  necessary  to  give 
the  Russians  a  practical  demonstration  of  the  principle  of  war 
coalition  by  opening  a  "secondary  front"  in  the  Mediterranean 
or  in  Norway.  Some  kind  of  bridgehead  would  undoubtedly  be 
established  in  one  or  other  of  these  areas. 

The  Swedish  press  reports  that  President  Ramirez  has  categor- 
ically denied  that  Argentina  intends  to  break  off  diplomatic 


-115-  CONFIDENTIAL 


10  Jul.  1943 

-  a  -   as  with  the  /ocis » 

Official  rep:rts  have  been  publish.-  in  the   .'mal  :-.'oaorican 
press     d  the  landing  in  Sicily  in  which  Britisl  ,    U.S...,,    and 
Ca       Lan  but  oc    French  troops  arc  said  t     be  taking  part.   - 
.    1  lis  -nhewer  has  issued  a  proclanation  to  the  French, 
I-rcek,    and  Jugoslav  pc  ,   sta  ohat,   with  the  attack  on 

Sicily,    the    first  step  has  been  taken       wards  their  libera- 
tion.    Further   events  shruld  b_    awaited   calialy« 

Political  c  ataries  underline  the  inpartanc _      t    the  invasi 

now  beginning  on  the    European   continent,     .Vpprcci  !  ap- 

proval are  also  voiced  in  the  Russian  press. 

Conference   .n  the   Situatizr.  •■rlth  Chief,    Naval  5i  -.ff : 

In  connect!: a  with  the  situation  rep  rt  on  the  sneny  landing 
in  Sicily,  the  question  :;  operations  by  >ur  own  FT  beats  and 
submarines,  in  accordance  with  flaval  Staff  fs  statement  as  in 
War  Diary  9  Jul.  was  raised.  ,\s  far  as  the  situation  can  be 
judged  at  Naval  Staff,  operations  by  these  beats  in  the  area 
:    the    Sicilian  east  fc   appear  advisable.     Conmandia g  Ad- 

miral, Germn  Naval  Connand,  Italy  and  C0r2x.nc.er,  Submaria.s 
Italy  will  be  infenaed  accordingly  by  teletype.  F;r  copy  of 
t   Letype  l/3kl  19567/43.   Gkdos  see  t  ape  1300.     In  present 

circu:  :,   the  fea]       f  operational  vess . 1  ff 

1  retreat  to  the  ..         a  need  n  t    yet  be  considered.     It 
on  highly  advisable,    b  wever,    fer  terped:   baa   E*   :,10", 
which  is    still   &*  ~z    :f  the    Straits     f        ssina  en  route  frcn 
Corfu  -      Faranto,   to  be  transferred  to  the  uegcan  irrrdiateiy. 
Chief j   liaval  S^aff,   deed  ly.     For  directive  l/5kl 

T      p  19545/43  Gkdos  t:    Z-.man  Naval  Coixr.nd,    Italy,  with  copy 
South  and  Admiral  Aegean  s__   teletype  13H. 

Chi-: :",     .aval  Staff  al  .- '    1     .  that  German  Naval  Command,    Italy 

should  furnish  a  description  of  the  possibilities    offered  by 
present  situation*     This   should  comprise   a  continuous   and 
clear  survc;       t  the   distribute   a  and  readiness     f     ur  own  forces. 

s   now  :  a.    f  r   the   Italian  Fleet  when  ias   action 
caa  no  longer  be  0  md  will  bria      »     a  results.      7..: 

pla.         ;"   the   Itali   a  ..  miralty  must  be  inquire,   aaa :      ad  ro- 

."  _  -.      more,    Chief,  1    StaJ  anted   :ut  t 

inportance  of  tying  down  eneny  forces   in  by  the  pre- 

sence ats    of   our  fleet  -rated 

by  the  reaction  to  the  two -day  training  cruise-    f  Connanding 
iral,    Task  Force  from  4-6  Jul.     Hero,    :    ' ,   the   distressing 
f  fuel  unfortunately  a  sericus  arossment.      In  any 

.    it  is  nocessarv  for  the   t  to  leave    the  submari] 


-116-  :::t::i::::..i 


CONFIDENTIAL 
10  Jul.  1943 

engaged  in  the  northern  area  where  they  arc. 

II.  Chief.  Naval  Staff.  Operations  Division,  Operations 
Branch  reported  on  the  assessment  of  enemy  intentions  in  the 
Mediterranean  submitted  on  9  Jul.,  before  the  enemy  action  had 
become  known  by  Supreme  Command,  Armed  Forces,  High  Command, 
Operations  Staff  to  Commanding  General  South  and  Commanding 
General  Southeast,  with  copy  to  Naval  Staff  and  Commander  in 
Chief,  German  Air  Force.  For  relative  teletype  sec  l/Skl 
1974/43  Gkdos.  Chefs,  in  War  Diary,  Part  C,  Vol.  XIV.  The  en- 
emy's first  objective  was  expected  to  be  the  occupation  of 
Sicily  and  Sardinia  and  then  of  Corsica.  While  an  attack  on 
Calabria,  for  the  purpose  of  cutting  the  supply  route  to  Sicily, 
was  expected  in  combination  with  the  Sicilian  operation,  a  sub- 
sequent large-scale  landing  on  the  Italian  mainland  was  regarded 
as  less  likely  than  one  on  the  Greek  mainland  which  would  also 
have  the  political  effect  on  Hungary  and  Reumania  and  the  elim- 
ination of  the  Roumanian  oil  fields  in  its  favor.  Armed  Forces 
High  Command  considers  that  there  is  a  greater  threat  to  the 
Epirus  that  to  the  Peloponnese0  A  landing  in  central  or  northern 
Italy  or  on  the  French  Mediterranean  coast  was  considered  highly 
improbable  in  the  near  future.  The  conclusions  derived  from 
this  assessment  have. been  issued  in  an  order  which  has  so  far 
not  reached  Naval  Staff. 

I I I .  Chief.  Naval  Staff.  Quartermaster  Division,  Shipping  and 
Transport  Branch  reported  on  an  investigation  of  merchant  ton- 
nage In  the  Baltic  Sea  with  a  view  to  possible  assignments  to 
shipping  traffic «  The  result  was  negative,  also  in  the  opinion 
of  the  representative  of  the  Reich  Commissioner  of  Maritime 
Shipping  who  participated  in  the  investigation.   In  this  con- 
nection, Chief,  Naval  Staff,  Quartermaster  Division  pointed 
out  that  the  matter  of .  barracks  construction  is  an  almost  in- 
superable obstacle  to  the  release  of  accommodation  ships. 

In  a  'highly  restricted  circle: 

IV.  Report  by  Chief.  Naval  Staff,  Operations  Division.  Opera- 
tions Branch: 

a.    It  is  evident  fr^m  the  war  diary  of  the  Penang 
Etappe  that  the  Japanese  are  setting  ab  ut  the  preparations  for 
establishing  this  station  with  praiseworthy  deligence  and  on  a 
generous  scale0 

With  reference  to  the  status  of  Japanese  transport-submarines, 
Naval  Attache-,  Tokyo  reports  that  at  the  moment  there  are  10 
large  units  of  this  kind  under  c  nstruction  which  will  be  ready 


-117-  COMF1  DEIJTIAL 


CONFIDENTIAL 
10  Jul.  1943 

in  April  1944.  They  are  of  2, 600  tons.   They  arc  to  be  used 
for  supplying  the  troops  in  the  Melanesia!!  area  -which  is  be- 
coming increasingly  difficult  to  do  with  surface  ships.  In 
view  of  the  great  importance  of  this  area  as  an  out-post  of 
the  Greater  East  Asia  defenses,  it  is  unlikely  that  *ven  one 
of  these  submarines  can  bo  made  available  to  supply  our  boats. 
Moreover,  the  submarines  are  primarily  designed  to  supply 
food  and  ammunition  to  troops  in  the  jungle „  Aircraft  gas- 
oline is  carried  in  barrels,,  They  have  no  tanks  for  delivering 
oil©  Of  the  cruiser -submarines  J  "1"— "8"  so  far  employed,  only 
one  is  still  useable* 

Chief,  Naval  Staff  nevertheless  desires  that  our  efforts  be 
continued „ 

The  Japanese  Liaison  Officer  reported  on  5  Jul.  that  the  Im- 
perial Japanese  Navy  was  aware  of  the  Fuehrer's  great  interest 
in  the  new  Japanese  battleships.  Pictures  so  far  published  in 
the  press  do  not  show  the  newest  type0  On  16  Jul,,  the  German 
Naval  attache,  Vice  Admiral  Wenneker,  will  visit  the  new  battle- 
ship YAMATO.  He  -will  be  the  only  Attache  to  whom  the  ship's 
construction  and  armament  will  be  shoi-m  without  security  re- 
strictions.  The  Gorman  Navy  would  then  be  informed  by  the  At- 
tache «  The  Japanese  Navy  is  particularly  anxious  that  no  other 
navy,  especially,  the  Italian  Navy,  should  come  to  know  of  this 
inspection  and  the  relative  report s. 

The  Fuehrer  will  probably  be  advised  of  the  above  arrangement 
by  the  Japanese  Ambassador  via  the  German  Foreign  Ilinisterc 

b.    Group  North  Fleet  has  asked  to  be  furnished  with 
the  relative  inf  rmation  and  the  names  of  suitable  seagoing 
personnel  for  the "planned  sabotage  operations  in  Iceland  (see 
War  Diary  4  Jul*)*  .  Special  fishing  smacks  might  be  used  for 
transport  or  perhaps  personnel  might  bo  landed  by  parachute 
and  picked  up  by  ship0  The  Group  suggests  that,  if  no  suit- 
able targets  are  found  in  Iceland,  commando  raids  could  be 
made  on  the  coast  of  opitzbergen  and  perhaps  also  on  Jan  Mayen 
and  Greenland.  Naval  Staff  concurred  and  ordered  Naval  Command 
Norway  to  prepare  the  necessary  vessels.  For  further  details  ' 
sec  order  l/Skl  I  op  1944/43  Gkdos.  Chefs.  Copy  in  War  Diary, 
Part  C,  Vol;  Ha,  At  the  same  time,  Group  North  Fleet  advised 
Naval  Staff,  for  information,  of  a  request  to  5th  .'*ir  Force  for 
systematic  reconnaissance  in  connection  with  the  plan  to  neutra- 
lize the  very  troublesome  enemy  bases  which  are  suspected  on 
the  west  and  south  coast  of  Spitzbcrgen,  and  of  a  directive  to 
Admiral,  Northern  Waters  to  assign  a  submarine  to  make  contin- 
uous reconnaissance  of  the  fjords  on  the  west  coast  of  Spitz- 
bcrgen, check  enemy  movements  and  attack  naval  traffic  s.yuth  of 

-118-  CONFIDENTIAL 


CONFIDENTIAL 
10  Jul.  1943 

78°30rN,  in  cooperation  with  the  reconnaissance  of  5th  Air 
Force o 

Chief,  Naval  Staff  approved 0 

The  requested  maps  were  dispatched  by  Naval  Staff,  Hydro graphic 
and  Heterological  Division  to  Group  North  Fleet  on  29  Jun.  The 
Group  has  been  informed  by  Naval  Staff,  Operations  Division  that 
from  previous  experience,  ships  coming  from  the  west  reach  the 
Kara  Sea  around  the  middle  of  July  at  the  earliest,  and  that 
ships  from  the  east  pass  Vilkitski  Straits  around  10  Aug.  The 
last  ships  return  from  the  Ob  and  Yenisei  to  the  west  in  the 
second  half  of  Oct.,  and  from  Dickson  to  the  east,  in  about  the 
first  ten  days  of  Sept. 

c.    Group  West  has  reported  the  preliminary  results  of 
the  investigations  and  conferences  on  submarine  protection  in 
the  Biscay  area,  held  in  accordance  with  instructions  of  Naval 
Staff.  For  copy  of  the  relative  teletype  l/3kl  19506/43  Gkdos 
see  War  Diary,  Part  C,  Vol.  II  b.   The  plan  is  for  the  submarines 
always  to  sail  in  companies  of  4  to  6,  with  escort  by  mine- 
sweepers and  destroyers  or'  torpedo  boats  to  the  outer  points 
and  for  the  next  100  miles,  by   destroyers  or  torpedo  boats,  and 
then  close  escort  by  Ju  88  planes*  After  parting  company,  the 
submarines  will  proceed  in  pairs  without  escort 0  Outward  escort 
would  be  combined  with  the  bringing  in  of  one  or  two  returning 
submarines.  Escort  beyond  6°  —  7«5°  W  would  be  provided  only  in 
exceptional  cases  or  for  submarine  assistance.   The  measures 

planned  thus  provide  protection'  in  the  main  danger  area  between 
8°  and  12°  W„  They  will  however,  shorten  the  route  through  the 
danger  area.   The  measures  necessitate  reinforcement  of  the  de- 
stroyers and  torpedo  boats  by  5  more  ships.  Air  Commander,  At- 
lantic Coast  intends  to  renew  his  request  for  the  strength  of 
the  Ju  88   formations  to  be  increased  from' 50  ^6  300  planes*   The 
difficulty  lies  in  the  fuel  oil  situation,  the, air.  threat  at  the 
mooring  places  and  the  enemy  action  which  must  be  expected  as 
long  as  our  own  air  reconnaissance  is  inadequate.   Our  anti-air- 
craft submarines  can  only  be  used  in  the  area  between  8°  and  12° 
West. 

Naval  Staff's  comments  will  follow.   In  view  of  the  difficulties 
already  mentioned  by  Group  West,  the  provision  of  escort'  in  the 
least  dangerous,  area  appears  questionable.  Furthermore,  sailing 
in  company  will  involve  considerable  loss  of  time  to  the  sub- 
marines • 

The  statement  on  the  question  of  action  against  enemy  anti-sub^ 
marine  groups  off  the  Bay  "of  Biscay,  requested  from  Group  Vest, 
has  not  yet  been  received^ 

-119-  CONFIDENTIAL 


CONFIDENTIAL 
10  Jul.  1943 

Special  Items; 

I.  In  Brief  Reports  on  the  Enemy  Situation  Mos.  13  and  14/43., 
Naval  Staff,  Maval  Intelligence  Division  reports  on  enemy  aux- 
iliary aircraft  carriers,  escort  vessels  and  submarine  chasers, 
and  on  new  enemy  weapons  (rocket  devices),  anti  submarine  weapons, 
mine  warfare,  battleship  building  and  losses,  and  other  subjects. 
Copies  as  per  l/Skl  20557  and  20731/43  geh.  see  War  Diary,  Part 

D  "Material  on  the  Snemv  Situation." 

ival  Staff,  Naval  Intelligence  Division  has  also  issued  two  new 
maps  showing  shipping  routes,  navigable  channels  and  mine  fields 
on  the  north  and  west  coasts  of  Scotland.  For  copy  as  per  l/Skl 
19716/43  Gkdos  see  War  Diary,  Part  C,  Vol.  II  b, 

II,  A  summary  of  data  on  the  enemy  obtained  by  Radio  Decipher- 
ing and  Radio  Intelligence  Services  from  28  Jun.  to  4  Jul.  is 
given  in  Radio  Monitoring  Report  No  27/43  by  Chief,  Naval  Staff, 
Naval  Communications  Division,  Intercept  Reports  (Communications 
Intelligence  Branch )0 

Attention  is  called  to  page  12  concerning  concent ration  of  U.S. 
naval  forces  in  the  Southwest  Pacific  which  indicates  the  be- 
ginning of  a  major  offensive  against  the  Japanese  island  posi- 
tions threatening  Australia  from  the  north 0 

Attention  is  also  called  to  Enclosure  4  containing  a  list  of 
artillery  detachments  and  batteries  identified  in  the  west  and 
their  positions  in  the  coastal  area  of  the  North  Sea, 

Situation  on  10  Jul,  1943: 

I_. War  in  Foreign  Waters: 

Nothing  to  report, 
II.   Situation  West  Area : 

1.    Enemy  Situation: 

In  the  forenoon,  17  planes  were  observed  in  the  Bay 
of  Biscay  up  to  140  W  but  only  one  plane  was  observed  after 
1400,  Enemy  forces  were  located  at  0717  in  BF  7684,  at  1030 
in  BF  7274,  and  at  2145  in  BE  9699. 

Our  air  reconnaissance  sighted  1  cruiser  on  course  200°  in  BF 
7589  at  1920  and  4  destroyers  coming  from  the  south  and  1  cruiser 
on  course  350°  in  BE  7584  (northeast  of  Ferrol)  at  1935.  All 

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10  Jul.  1943 

the  vessels  were  travelling  at  high  speed,-, 

It  remains  *to  be  established  whether  this  is  a 
regular  or  occasional  patrol  or  -whether  the 
ships  were  merely  passing  through  the  area0 

2.    Own  Situation: 

Atlantic  Coast  Area; 

The  steamer  BORDSEE  (959  BRT)  struck  a  mine  in  BF 
6897  at  0345  and  is  putting  into  Royan.  Torpedo  boats  T  "24" 
and  T  "25"  moved  to  Brest.  On  contact  with  the  enemy,  see  "Chan- 
nel Coast." 

The  ELM/J-mines  were  cleared  off  the  Gironde  and  two  off  St. 
Nazaire.  Minesweeper  M  "4451"  struck  a  mine  in  BF  9&51  and 
sank.  Three  Mark  Ill-mines  were  cut  at  the  place  where  the 
ship  sunk.  There  is  believed  to  be  a  dense  barrage  across  the 
route.   Route  "Herz"  has  been  closed  up  to  44°N,  owing  to  suspec- 
ted AT-mines. 

Naval  Staff,  Submarine  Division  has  advised  Naval  Staff,  Opera- 
tions Division,  for  information,  of  its  request  to  Air  Commander, 
Atlantic  Coast  that  special  attention  be  devoted  during  recon- 
naissance, escort  and  fighter  operations  to  the  sighting  of 
enemy  submarine-chasers  and  that,  if  possible,  reports  thereon 
be  transmitted  immediately  by  the  planes  so  that  our  naval  forces 
may  take  action  as  quickly  as  possible  and  our  submarines  may 
be  warned.  The  main  center  of  the  enemy  anti-submarine  block- 
ade area  is  probably  in  the  waters  around  Cape  Finisterre  and 
in  grid  squares  BF  17,  18,  41,  42*  For  copy  of  the  relative 
teletype  l/Skl  I  op  1978/43  Gkdos0  Chefs,  sec  War  Diary,  Part 
C,  Vol.  II  b. 

Channel  Coast: 

The  patrol  positions  in  the,  Channel  were  not  taken 
up  due  to  stormy  weather. 

Five  boats  of  2nd  Minesweeper  Flotilla  under  the  command  of  the  Flo- 
tilla Canmander  made  contact.. with  at  least  5  enemy  destroyers  and 
6-8  SGB  in  two  groups,  in  BF  2863  between  0255  arid  0320.   The 
destruction  of  1  destroyer  of  the  JERVIS-type  and  2  SGB  was  con- 
firmed by  several  visual  observations.  Many  hits  were  scored 
on  other  enemy  vessels.   Some  of  our  boats  suffered  consider- 
able damages.  Minesweeper  M  "84"  was  secured  by  torpedo  boats 
T  "24  and  T  "25"  and  escorted  close  in  to  shore.   The  fate  of 


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10  Jul.  1943 

minesweeper  M  "153"  which  was  left  heavily  damaged,  is  still 
unknown.  Except  on  minesweeper  M  "153",  casualties  were  light. 

III.  North  Sea,  Norway.  Northern  Waters: 

North  Sea: 

One  enemy  plane  was  shot  down  by  naval  anti-aircraft  fire 
at  Tershelling.  In  the  waters  north  of  Amcland  mine  laying  by 
enemy  planes  is  suspected.   Commanding  Admiral,  Defenses  North 
had  nothing  to  report 0 

Norway,  Northern  Waters: 

1.  Enemy  Situation: 

The  main  photographic  reconnaissance  report  on  Scapa 
Flow  and  Lang  Hope  as  on  9  Jul0  (s^e  teletype  1141)  docs  not 
differ  in  any  essential  points  from  the  preliminary  report.  For 
detailed  report  by  5th  Air  Force  on  the  results  of  the  recon- 
naissance on  9  Jul.,  see  teletype  1445.   In  the  West  Area,  there 
is  no  new  information  beyond  the  warship  movements  reported  on 
9  Jul,  In  the  Baltic  Area,  photographic  reconnaissance  of  Molotovsk 
on  8  Jul,  revealed  8  merchantmen  (42,800  BRT),  1  motor  minesweeper, 
2  destroyers  under  construction.  Seven  steamers  totalling  25.,  000 
BRT  were  sighted  at  Archangel sk,  and  2  "S"  class  torpedo  boats, 
2  minesweepers  and  2  merchantmen  at  Jokonga. 

At  0550,  one  British  vessel  was  located  in  AM  47700 

Twenty  planes  were  observed  operating  in  the  area  of  18th  Group, 
12  planes  in  the  area  of  15th  Group  and  no  planes  in  the  area  of 
the  Iceland  squadrons* 

2.  Own  Situation: 

On  8  Jul.,  a  landing  boat  in  Petsamo  fjord  was  fired 
upon  by  an  enemy  battery.  On  9  Jul.,  the  batteries  of  both  sides 
exchanged  fire  in  the  Petsamo  area.   Between  O63O  and  0700,  Coas- 
tal Anti-Submarinc  Listening  Station  Nurmansactti  West  observed 
submarine  noises  at  33 5° • 

During  an  enemy  air  attack  on  Kiberg,  2  cutters  were  sunk.  Other 
enemy  air  activity  was  on  a  reduced  scale.  Two  of  our  FW  190 
planes  tried  unsuccessfully  to  engage  a  Mosquito  near  Bergen, 

Thirty- four  northbound  ships  and  21  southbound  ships  were  es- 
corted by  the  Escort  Service. 

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10  Jul.  1943 

Group  North  Fleet  has  approved  the  decision  of  Commander,  Sub- 
marines Norway  to  withdraw  all  submarines  from  the  patrol  posi- 
tions to  the  Norwegian  coast. 

Group  North  has  also  informed  Chief,  Naval  I ict topological  Service 
that  the  Bear  Island  meteorological  gear  has  been  installed,, 
(See  teletype  1513). 

Commander  Submarines,  Norway  has  been  using  the  submarines  as- 
signed for  regular  or  special  duties  for  defensive  purposes  a- 
long  the  northern  and  western  coasts,,  In  tile  opinion  of  Group 
North  Fleet  this  jeopardizes  the  original  plan  which  x^as  for 
these  boats  to  undertake  offensive  actions  as  the  occasion  arose. 
The  Group,  therefore,  suggests  that  boats  leaving  home  bases 
should  assembly  and  wait  at  Kristiansund  South  or  Bergen  in 
Groups  of  at  least  three,  and  should  not  sail  until  the  next 
3  boats  have  arrived.  The  postponement  of  one  Atlantic  opera- 
tion should  be  allowed  for.   If  this  is  approved,  the  Group 
requests  permission  to  use  the  three  boats  that  will  always 
be  standing  by  in  case  of  enemy  attack.   (See  teletype  1220) 0 

The  matter  will  be  examined  in  cooperation 
with  Naval  Staff,  Submarine  Division. 

Commander  Submarines,  Norway  has  advised  Naval  Staff,  Operations 
Division,  for  information,  of  his  report  to  Group  h'orth  Fleet, 
5th  Air  Force  on  the  use  of  submarines  U  "601"  and  U  "255"  for 
refueling  Blom  and  Voss  seaplanes,,  For  copy  of  the  report  see 
teletype  1910. 

Group  North  Fleet  has  submitted,  under  date  of  4  Jul.,  the  opera- 
tional plans  for  a  repeat  of  "Wunderland"  with  the  request  for 
approval.   The  plan  provides  for: 

1,  Four  submarines  to  be  sent  to  the  Kara  Sea 
in  mid-July  with  the  primary  task  of  attacking  shipping  traffic 
and  the  secondary  task  of  making  reconnaissance  for  the  LILSTZOW, 

2.  The  LUETZOW  will  be  ready  for  the  operation 
(code  word  "Husar")  a*  from  1  Aug0  The  commandant  will  be 
authorized  to  attack  at  his  own  discretion  according  to  the 
inform. tion  he  receives,  provided  the  attack  position  and  ice 
conditions  arc  favorable  and  that  there  is  a  reasonable  chance 
of  success. 

Naval  Staff  approved  the  operational  plan "on  7  Jul.  Correspond- 
ing order  l/Skl  I  op  1910/43  Gkdos.  Chefs,  is  filed  in  l/Skl  I 
op  "Wunderland  II, " 

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10  Jul.  1943 

IV.  Skagerrak,  Baltic  3ea  Entrances,  Ba.lt ic  Sea : 

One  ELM/J-mine  was  cleared  north  of  Svinemuendc  {i\0 
8572)  near  the  place  where  tug  STURM  was  wrecked. 

No  other  important  reports  have  been  received  from  the  en- 
tire area, 

V.  •   Submarine  Warfare: 

1 a    Enemy  Situation: 

No  special  reports  have  been  received. 

20    Own  Situation: 

On  7  <-nd  8  Jul.,  a  number  of  our  submarines  was 
attacked  by  enemy  planes  in  the  North  Atlantic.  Some  of  the 
attacks  were  repulsed.  One  Liberator  was  shot  down  in  BF 
4584«  Two  boats  had  to  put  back  and  one  was  lost. 

Successes  reported  are:  One  sailing  freight  vessel  sunk  by  gun- 
fire and  2  freighters  totalling  13,000  BRT  sunk  from  a  convoy 
by  submarine  U  "759"  in  the  Caribbean  Sea;  on  the  Brazilian 
coast,  submarine  U  510"  sank  a  transport  of  10,000  BRT  and  2 
freighters  totalling  11,000  BRT  from  a  convoy <,  For  another  suc- 
cess in  the  Mediterranean,  see  "Own  Situation,  Mediterranean,, " 

Naval  Staff,  Submarine  Division  has  advised  all  offices  concerned 
of  Chief,  Naval  Staff's  order  to  the  effect  that  it  is  not  planned 
to  execute  operation  "Gute  Hoffnung"  until  the  new  moon  period 
at  the  end  of  Aug. /Sept, 

Naval  Staff,  Submarine  Division  also  submitted  the  operational 
orders  for  submarine  U  "218"  for  minining  the  deep  fairway  in 
the  Straits  of  Gibraltar,  and,  as  an  alternative  task,  the  mining 
of  the  northern  approach  to  the  Gulf  of  Paria,  Naval  Staff, 
Operations  Division  has  no  comments 9. 

VI.  Aerial  Warfare: 


British  Isles  and  Vicinity: 

In  the  West  Area,  there  'was  strong  enemy  air  activity  by 
several  bomber  formations  which  attacked  airfields.  Seven  enemy 


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10  Jul.  1943 

planes  wore  shot  down.      Only  slight  damage  was  caused  to  mili- 
tary installations, 

Mediterranean  Theater: 

During  the  night  of  9  Jul.,   the  Gcrix.n  Air  Force  had  107 
bombers  in  operation  in  the  Augusta  area,    in  the  Sicilian  cam- 
paign.    One  cruiser  and  4  transports  were  hit.      Impacts  were 
observed  among  the  landing  boats.     Eighteen  enemy  planes  were 
shot   down  during  the   day  in  the  sea  area  south  of  Sicily.      In 
addition,    our  Air  Force  carried  out  reconnaissance  of  the  bat- 
tle area;     A  photographic  report  for  the  period  between  1348 
and  1840,   covering  the   area  and  the  coast  between  Licata  and 
Syracuse,    rovealed  94  freighters  for  a  total  of  774,000  BRT,   a 
tanker  of  about  10,000  BRT,   160- large  and  248  small  landing 
boats,   42  LST,    and  1  battleship,    2  cruisers,   18  destroyers  and 
3  gunboats.      Many  landing  boats  and  some  patrol  boats  were 
sighted  in  the  harbor  of  uugusta.      ^bout  100  -  200  vessels  in- 
cluding 20-30  large  ships  were  anchored  in  the  bay  between 
Augusta  and  Syracuse     Landing  boat  shuttle  traffic  between  the 
coast  and  the  ships  was  noted.      In  the  harbor  of  Syracuse  and 
off  the  coast  100  -  150  vessels  including  about  20  large  ones 
were  counted.      At  2240,   12  burning  ships  and  big  explosions  were 
reported  south  of  Syracuse.     For  further  details   of  the  recon- 
naissance,   see  Daily  Situation. 

During  the   day,    the  enemy  continued  to  attack  airfields  in  Sicily, 
Heavy  damage  was  reported  only  from  Trapani,     Anti-aircraft  guns 
brought  down  5  enemy  planes.      In  the  night  of  10  Jul.,    Trapani 
was  again  attacked  and  2  Bostons  were  shot  down  by  anti-aircraft 
fire.     In  the  eastern  Mediterranean,    an  attacking  plane  was 
shot  down  during  an  enemy  air  attack  on  Italian  PT  boats  in  the 
Crete  area. 

Eastern  Front ; 

On  9  Jul*,  119  enemy  planes  were  again  shot  down  on  the 
Army  front. 

Commander  in  Chief,  Air  Force,  Operations  Staff,  Intelligence 
Section  reports  that  Russian  aviation  personnel  have  noticably 
increased  since  March  of  this  year.   The  arrival  of  new  forces 
is  especially  noticeable  in  the  area  southeast  of  Kharkov  and 
between  Kharkov  and  Kursk  where  altogether  1400  additional 
planes  arrived.  At  the  beginning  of  Jul.,  there  were  about  12, 
500  frontline  planes  on  the  Eastern  European  Front,  of  which 
800  -  900  would  be  constantly  operational.  The  corresponding 
ficrure  for  March  was  estimated  at  about  3,600, 


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10  Jul.  1943 

711.  Vfarfare  in  the  Mediterranean  and  Black  Sea: 

lo    Enemy  Landing  in  Sicily: 

According  to  an  agent's  report,  300  vessels  with 
invasion  troops  for  Sicily  left  Algiers  under  fleet  escort 
at  1600  on  9  Jul.,  and  100  vessels  left  Tunis  also  under  fleet 
escort.  At  0115  on  10  Jula,  Catania  was  bombarded  by  heavy 
naval  artillery.  In  the  early  morning  hours,  the  enemy  launched 
a  large-scale  landing  on  a  long  front  in  the  southeastern  part 
of  Sicily  from  Licata  to  Syracuse,  Many  transports,  landing 
ships  and  landing  boats  were  noted  in  this  area  by  our  air  re- 
connaissance.  The  main  center  of  the  landing  operation  is  in 
the  Syracuse  area,  near  Cape  Passero,  the  bay  near  Gel  a,  and 
near  and  west  of  Licata,  Heavy  units  bombarded  Licata  from  the 
sea  at  1200  and  the  coast  southeast  of  Licata  at  123 6.   A  heavy 
battle  group  of  2  battleships,  1  aircraft  carrier,  7  cruisers  f 

and  many  destroyers  was  repeatedly  reported  in  the  Syracuse 
area  during  the  forenoon.   The  landing  on  the  south  coast  was 
apparently  also  protected  by  one  or  two  heavy  battle  groups  of 
1-2  battleships  or  monitors  with  cruisers  and  destroyers. 
According  to  a  report  from  our  Air  Force,  a  landing  attempt  at 
Augusta  was  repulsed  at  0823,  At  1120  there -were  no  enemy 
forces  in  that  harbor.   This  report  contradicts  another  Air 
Force  observation  (time  unspecified),  that  numerous  landing 
boats  and  some  patrol  boats  were  sighted  in  the  harbor  of  August a . 

At  1158,  the  combat  group  Empedocle  reported  that  the  Italian 
vessels  had  left  their  positions  and  were  withdrawing,  accord- 
ing to  the  Italian  admiralty's  communique  of  9  Jul,,  the  naval 
teleprint  station  at  Empedocle  had  been'  completely  destroyed  at 
0552  and  had  been  transferred.  At  0951.,  the  pier  at  Augusta  was 
blown  up  and  the  PT  boat  base  was  .abandoned.  (■ 

From  here  it  is  difficult  to  judge  whether  these  measures 
by  the  Italian  command  were  necessary.  However,  the  im- 
pression prevails  that  the  positions  were  given  up  before 
being  overwhelmed  or  even  seriously  attacked. 

According  to  reports  so  far  received,  the  enemy  Air  Force  ap- 
parently did  not  take  part  in  the  landing 'battle  but  confined 
itself  to  attacks  by  comparatively  small  forces  on  railways ^ 
roads  in  the  roar  area  and  a  few  airfields.   The  situation  re- 
port of  Commanding  General,  South,  states  that  the  harbor  and 
the  south -rn  part  of  Syracuse  were  taken  by  the  enemy  during  the 
evening.   Today  also  there  arc  no  reports  of  attacks  on  the 
western  part  of  the  island* 

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10  Jul.  1943 

The  landing  group  in  the  Licata  -  Gela  sector  apparently 
consists  of  3  U.S.  landing  divisions  under  the  command  of 
General  Patton  and  has  more  than  180  transports  and  300 
landing  vessels  at  its  disposal.  The  Cape  Passero  -  Syracuse 
landing  group  is  estimated  at  about  4  landing  divisions  prob- 
ably under  British  command.  About  110  transports  and  300 
landing  vessels  were  counted  in  this  group*  One  U.S.  cruiser 
of  the  BROOKLYN  class  was  identified  in  the  covering  group  off 
the  east  coast.   The  QUEEN  EMMA  and  PRINCES  BEATRIX  were  iden- 
tified among  the  landing  transports.  The  enemy  made  especially 
great  use  of  PT  and  motor  gunboats.  3rd  PT  Boat  Flotilla  which 
was  sent  out  against  the  enemy  from  Empedocle  on  the  evening  of 
9  Jul*,  met  a  strong,  superior  group  of  enemy  motor  gunboats  and 
withdrew  to  the  west.  Seven  boats  of  the  flotilla  entered 
Palermo  at  0830  on  10  Jul„  German  Naval  Command,  Italy  had 
planned  to  use  the  flotilla  for  defense  against  enemy  landing 
attempts  on  the  west  coast  of  Sicily.  But,  apparently  as  a 
consequence  of  Naval  Staff's  directive  that  ?T  boats  and  sub- 
marines were  to  be  sent  into  action  on  the  east  coast  of  Sicily 
the  flotilla  xras  ordered  to  sail  immediately  for  the  Straits  of 
Messina  for  operations  off  Syracuse,  and  in  the  evening,  6  boats 
left  Palermo,  2  of  which  had  later  to  be  released  because  of 
damaged  steering  gear, 

German  Naval  Command,  Italy  has  reported  on  the  distribution  and 
state  of  readiness  of  our  naval  forces  as  at  1600,  For  copy 
see  teletype  0015c  The  report  states  that  at  tl.at  time,  5 
boats  of  3rd  PT  Be,at  Flotilla  were  ready  for  action  at  Palermo 
and  2  in  limited  operational  status  while  3  boats  at  Toulon 
were  non-operational.  Five  boats  of  7th  PT  Boat  Flotilla  were 
ready  for  action  at  Cagliari  and  3  boats  non-operational  at 
Toulon, 

Due  to  engine  trouble,  torpedo  boat  TA  "10"  put  in  to  Taranto 
on  the  evening  of  9  Jul,  Torpedo  boat  TA  "9"  is  ready  for  ac- 
tion at  Toulon  and  torpedo  boat  TA  "11"  is  ready  for  action  at 
Naples . 

The  mine  ships  P0MMERN  and  BRANDENBURG  are  ready  for  action  at 
Maddalena. 

The  patrol  and  escort  forces  and  6th  Motor  Minesweeper  Flotilla 
are  on  protection  duty. 

One  boat  of  12th  Motor  Minesweeper  Flotilla  is  en  route  from 
Mettunia  to  Civitavecchia  and  2  boats  are  en  route  from  Marseille 
to  Leghorn, 


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10  Jul.  1943 

According  to  a  report  from  German  Naval  Command,  Italy,  the 
Italian  fleet  is  standing  by  to  sail  at  Spezia  as  fron  1500o 
Detailed  plans  are  not  known. 

In  the  afternoon,  about  1700,  an  enemy  convoy  was  reported  - 
assembling  off  Bizcrta0  It  consisted  of  20  tank  transports,  8- 
LCTs,  5  steamers  and  1  tanker.  Another  convoy  of  2  transports, 
10  steamers  and  escort  vessels  was,  at  the  same  time,  on  an 
easterly  course  north  of  Bone.  Evidently  as  cover  for  these 
movements,  there  were  two  warship  formations,  one  of  2  cruisers 
with  8  destroyers  reported  at  1400  forty-five  miles  east  of 
Bizerta  and  the  other,  of  2  battleships,  6  cruisers,  and  3  de- 
stroyers, reported  at  17C0,  sailing  cast,  south  of  La  Galite, 

Submarine  U  "371"  probably  sank  one  steamer  of  8,000  BRT  and  one 
tanker  of  10,000  BRT  from  a  westbound  convoy  45  miles  northeast 
of  Bougie  at  1241. 

Commander  Submarines,  Italy  reports  that  enemy  operations  so  far 
provide  opportunities  for  submarine  sttack  mainly  south  and  east 
of  Sicily  but  that  operational  conditions  are  very  difficult  be- 
cause of  the  mine  and  air  situations.  Enemy  movements  in  the 
Western  Mediterranean  have  so  far  been  detected  only  east  of 
Bone.   There  is  no  apparent  threat  to  Sardinia  or  West  Sicily. 

In  the  Western  Mediterranean  there  are  4  German  and  10  Italian 
submarines  and  in  the  Eastern  Mediterranean,  1  German  and  4 
Italian  submarines •  One  German  submarine  is  in  the  Straits  of 
Messina  and  2  more  arc  at  Toulon  ready  for  sailing  today.   In 
the  Eastern  Mediterranean,  Commander  Submarines  plans  to  send 
the  submarines  that  have  been  operating  to  date  off  the  Cyrenaica 
coast  to  the  area  west  of  Malta,  to  send  a  submarine  now  passing 
through  the  Straits  of  Messina  Strait  to  the  area  southeast  of 
Syracuse,  and  to  send  the  boats  leaving  Toulon  to  its  support. 
In  the  Western  Mediterranean,  it  is  planned  to  leave  where  they 
are  the  two  boats  east  of  Gibraltar  which  have  only  a  few  days 
of  endurance  loft.   It  is  also  planned  to  station  2  submarines 
in  the  area  south  of  38°^  west  of  7°E.  Italian  submarines  are 
north  and  east  of  this  area. 

Chief,  Naval  Staff  has  approved  these  plans.  Armed  Forces,  High 
Command,  Operations  Staff,  Navy  has  been  informed  in  regard  to 
submarine  distribution  in  the  Mediterranean, 

In  connection  with  the  enemy  landing  in  Sicily  it  may  bo  noted 
that  a  report  from  the  French  General  Consul  at  Tangier,  dated 
3  Jul.,  and  forwarded  by  the  Foreign  Office,  alleges  that  the 
naval  forces  in  the  Western  Mediterranean  on  30  Jun.  consisted 
of  9  British  battleships,  4  aircraft  carriers  and  5  auxiliary 
aircraft  carriers, 

-128-  CONFIDENTIAL 


CONFIDENTIAL 
10  Jul.  1943 

These  figures  do  not  check  with  previous  infori.ir.ti on.  They 
nay  possibly  already  include  the  USA  naval  forces  which  are 
expected  to  arrive 0 

2*    Enemy  Situation  in  other  parts  of  the  Mediterranean: 

The  number  of  ships  in  Gibraltar  is  substantially 
unchanged.   Besides  1  landing  craft  transport  ship,  about  12 
destroyers,  11  corvettes,  15  escort  vessels,  1  transport,  43 
freighters,  9  tankers  and  altogether  185  planes  were  sighted. 

Mo  reconnaissance  reports  have  cone  in  from  the  Eastern  Med- 
iterranean. An  Intelligence  report  states  that  on  5  Jul.,  1 
light  cruiser,  3  destroyers,  4  submarines^  8  motor  torpedo 
boats  and  a  number  of  small  merchantmen  were  at  Polis  on  Cyprus. 
According  to  another  report  dated  2  Jul.,  there  arc  large  con- 
centrations of  landing  troops  in  Marsa  Matruk  undergoing  in- 
tensive training  with  tugs  and  landing  boats.  The  non-commis- 
sioned officers  are  said  to  be  equipped  with  maps  of  the  west 
coast  of  Greece o 

3 •    Own  Situation  in  other  parts  of  the  Mediterranean: 

The  POMMERH  and  the  BRAilDSUBURG  left  Maddalena  at 
1850  for  nine  operations  on  the  south  coast  of  Sardinia,   The 
ships  were  picked  up  several  times  by  enemy  air  reconnaissance. 
7th  PT  Boat  Flotilla  was  unable  to  operate  because  of  bad  weather, 

Naval  Attache,  Rome  has  forwarded  a  report  on  a  conference  with 
Admiral  Riccardi  at  which  the  Admiral  reviewed  the  military  sit- 
uation with  special  reference  to  the  most  probable  place  for  an 
enemy  landing  in  the  Italian  area.  As  developments  have  mean- 
while shown,  Admiral  Riccardi  was  right  in  concluding  from  the 
nearly  completed  enemy  preparations  that  a  landing  would  be  made 
in  Sicily,  He  was  then  very  confident  that,  with  the  present 
status  of  defenses  the  landing  attempt  could  be  expected  to 
fail  so  that  Italy  could  await  the  future  with  good  heart.  Ric- 
cardi said  (on  4  Jul.)  that  it  was  especially  fortunate  that  the 
German  High  Command  regarded  the  Mediterranean  as  the  main  war 
theatre,  an  opinion  confirmed  by  the  fact  that  no  German  of- 
fensive had  been  undertaken  in  the  East  J 

For  copy  of  the  report  as  per  l/Skl  193&/43  Gkdos.  Chefs,  see 
War  Diary,  Part  C,  Vol*  XIV. 

4.    Sea  Transport  Situation: 

The  supply  service  to  the  islands  was  carried  out 
without  incident.  Steamers  destined  for  Syracuse  were  redi- 
rected to  Messina. 

-1?9-  CCKFIDENTLJ. 


CONFIDENTIAL  " 
10  Jul,  1943 

In  regard  to  Group  South' s  suggestion  for' the  Italy-Greece 
traffic,  (see  War  Diary  5,  7,  and  9  July),  both  German  Naval 
Command  Italy  and  Naval  Staff  are  of  the  opinion  that  the 
Italian  Admiralty  will  not  give  up  the  control  of  this  traf- 
fic. The  step  might  even  be  inadvisable,  as  escort  forces 
could  not  be  turned  over  to  MarinoreS  from  the  area  of  German 
Naval  Command c  In  cooperation  with  Admiral  Aegean,  Marimorea 
would  have  to  make  sure  that  the  Italian  Admiralty  is  kept  in- 
formed on  the  escort  facilities  of  the  Aegean  forces.   In  the 
V-case  there  could  be  no  further  convoys  and  Admiral  Aegean 
could  be  given  unrestricted  authority, 

*  Italian  Naval  Command,  Morea? 

5.    Area  Naval  Group,  South: 

Aegean: 

At  2015  on  9  Jul,,  an  enemy  submarine  entered  the 
harbor  of  Castro n,  on  Chios}  from  the  south  and  bombarded  the 
harbor  with  about  20  rounds,  sinking  1+   ships  and  damaging  others, 
Several' harbor  and  military  installations  on  land  were  also 
damaged,   A  3c 7  cm  gun  fired  on  the  boat' but  it  was  undamaged 
and  put  out  again  to  the  south.  At  1800,  one  of  our  planes 
sighted  an  enemy  submarine  30  miles  northwest  of  Suda,   A  sub—' 
marine  hunt  by  Itlaian  forces  is  under  way.   From  1533  to  1609, 
23  Liberators  bombed  Malenes  airfield  in  western  Crete,  Our 
defenses  dispersed  the  enemy  formation  so  that  only  one  bomb 
fell  on  the  runway.  One  enemy  plane  was  shot  down  by  ant i— air- 
craft fire  and  two  by  fighters. 

Mine sweeping  by  12th  Motor  Minesweeper  Flotilla  off  the  Trikcri 
barrage  continued  unsuccessful  and  has  been  abandoned.  Passage 
is  again  open  to  traffic. 

The  damaged  steamer  L0UL0UDES  has  been  towed  to  Chalkis,  Other- 
wise, transport  traffic  in  the  Aegean  was  without  incident. 

With  reference  to  Group  South' s  request  for  a  replacement  for 
the  tanker  WILH2LMSHJRG  the  Reich  Commissioner  of  Maritime  Ship- 
ping,, Deputy  for  German  Sea  Transportation  in  the  Mediterranean 
has  informed  Naval  Staff  that  the  tanker  JOHN  KNUDSEN  will 
probably  be  moved  from  Trieste  to  the  Aegean  on  15  Jul,  No 
other  tankers  are  expected  to  be  available  in  the  near  future. 
For  details  sec  teletype  1330* 

At  the  request  of  Naval  Group  South  (see  war  Diary  7  Jul,) 

-130-  CONFIDENTIAL 


CONFIDENTIAL 
10  Jul.  1943 

German  Naval  Command,  Italy  has  established  that  the  Italian 
Admiralty  has  given  only  one  instruction  to  Italian  Naval  Com- 
mand, Southeast  that,  as  Italian  Chief  of  Staff,  he  is  responsi- 
ble for  keeping  Admiral  Aegean  informed.  Therefore,  Admiral 
Aegean  is  responsible,  through  Italian  Naval  Command,  Southeast, 
for  execution  of  the  tasks  in  question.  German  Naval  Command 
confirms  that  Group  South 's  views  conform  with  those  of  the 
Italian  Admiralty,  For  copy  of  the  relative  teletype  l/Skl 
19505/43  Gkdos.  see  War  Diary,  Part  C,  Vol.  XIV. 

KLack  Sea: 

Enemy  Situation: 

At  2315  on  9  Jul,,  there  were  three  (apparently) 
motor  gun  boats  4  miles  southwest  of  Anapa  viiich  turned  out  to 
sea  after  being  fired  on  by  8%8   cm  anti-aircraft  guns.  At  0020 
on  10  Jul.,  a  surfaced  submarine  was  sighted  in  the  Eupatoria 
area  and  was  attacked  with  depth  charges  by  2  of  our  naval  land- 
ing craft.  The  result  could  not  be  ascertained* 

Own  Situation: 

Naval  Artillery  Lighters  "8",  "9",  "10",  and  "11" 
and  motor  minesweeper  R  "166",  under  command  of  Commander  3rd' 
Motor  Minesweeper  Flotilla,  carried  out  a  bombardment  of  Atchuyev' 
for  about  one  hour  during  the  night  of  8  Jul.  as  already  reported. 
The  report  on  results  states  that,  of  10  vessels  close  inshore, 
3  were  sunk  and  3  others  completely  shot  up  and  forced  ashore* 
The  vessels  destroyed  included  2  motor  gun  boats.   Five  large 
fires  with  heavy  explosions  were  observed  on  land.  The  fires 
were  confirmed  by  air  reconnaissance.  The  enemy  responded  with 
remarkably  we  11 -aimed  fire  from  4*5  CO  and  one  or  two  8.8  cm 
batteries.  Our  casualties  were  light.   All  the  boats  are  slight- 
ly damaged  but  in  operational  condition.  For  brief  report  see 
teletype  0625. 

During  the  night  of  9  Jul.,  1  PT  Boat  Flotilla  fired  a  torpedo, 
which  missed,  at  a  small  giiwi-dship  in  the  waters  northwest  of 
Tuapse,   Otherwise,  no  enemy  forces  were  sighted  in  this  recon- 
naissance area  either  by  this  flotilli  or  by  11th  PT  Boat  Flotil- 
la.  Operations  by  1st  and  11th  PT  Boat  Flotillas  had  to  be  can- 
celled in  the  night  of  10  -  11  Jul.  owing  to  bad  weather. 

Submarine  U  "18"  entered  Constant za»  Two  Italian  midget  sub- 
marines" put  out  on  submarine  hunting  south—southeast  of  Con- 
stantza. 


-131-  confidential 


CONFIDENTIAL 
10  Jul.  1943 

During  an  enemy  air  attack  on  the  Anapa  transport,  two  of  the 
attacking  planes  were  shot  down.  One  naval  lancing  craft  was 
slightly  damaged.  Minesweeping  escort  vessels  of  the  Anapa 
transport  cut  two  M  26  type  nines  southeast  of  the  Kertch  Strait, 

According  to  a  report  from  Group  South,  sea  transport  perfor- 
mance in  the  Black  Sea  was  again  increased  during  Jun,  1943 
although  the  Danube,  Dnjepr  and  Bug  were  closed  for  some  time 
due  to  mine  danger  because  the  bridge  west  of  Kertch  was  de- 
stroyed,' A  total  of  212,727  tons  was  shipped.  The  steamer 
BIRGIT  1,971  BRT,  the  freight  train  ferry  VITEZ,  two  lighters 
and  one  naval  landing  craft  (i-IFB)  were  lost. 

VIII.  Situation  East  Asia: 

Nothing  to  report. 


11  Jul.  1943 

Items  of  Political  Importance: 

No  reports  of  interest  to  Naval  Staff  have  been  received,. 

Conference  on  the  Situation  with  Chief,  --aval  Staff: 

I.  In  reply  to  a  question  by  Chief,  Naval  Staff  as  tc  the 
status  of  the  new  radar  interception  sets,  the  representative 
of  Naval  Staff,  Chief  of  Communication  Division  reported  that 
only  test  samples  are  ready  at  present  and  that  the  sets  are 
net  in  production.   Two  sets  would  be  reader  in  July  and  about 
50  by  the  end  of  Oct.   Chief,  Naval  Staff  called  for  20  sets 

by  the  beginning  of  Aug.  as  the  submarines  will  then  be  equipped 
with  the  other  new  weapons  for  starting  the  convoy  campaign  and 
only  the  radar  interception  equipment  would  still  be  missing, 

Naval  Staff,  Chief  Naval  Communication  Division  reported  that 
everything  will  be  done  to  meet  this  demand  and  recommended  that 
Chief,  Naval  Staff  should  also  directly  approach  Minister  Speer 
on  the  subject, 

II,  On  a  report  by  Chief,  Naval  Staff,  Operations  Division, 
Operations  Branch  on  the  Mediterranean  Situation,  Chief,  Naval 
Staff  commented: 

a,    "It  is  now  prefectly  clear  that  a  large-scale  landing 
operation  with  very  strong  forces  is  under  way  on  the  southeast 

-I32-  CONFIDENTIAL 


CONFIDENTIAL 
'  11  Jul.  1943 

and  south  coasts  of  Sicily.  All  forces  must  be  thrown  in  there, 
particularly  the  7th  PT  Boat  Flotilla  from  Cagliari,  and  3rd 
PT  Boat  Flotilla  must  also  go  to  Messina." 

Chief,  Naval  Staff,  Operations  Division  reported  that  views  on 
this  subject  were  being  exchanged  with  German  Naval  Command, 
Italy,  A  decision  should  be  made  on  11  Jul.  Chief,  Naval 
Staff  ordered  that  German  Naval  Command,  Italy  be  advised  in 
writing  of  Naval  Staff's  opinion.  Operations  on  the  east  coast 
of  Sicily  arc  also  necessary  because  if  the  situation  should 
develop  unfavorably,  it  will  still  be  possible  for  our  forces 
to  evade  the  east* 

b„    It  is  now  proved  that  Italian  submarine  strategy  was 
wrong,  as  it  has  produced  nothing  and  is  now  completely  upset. 
In  comparison  to  the  successes  of  the  few  Gorman  Submarines  which 
have  produced  continuous,  and  lately,  very  important  results,  it 
can  only  be  said  that  the  potential  of  the  few  German  submarines 
is  much  higher  than  that  of  the  many  Italian  submarines, 

III.  At  the  suggestion  of  Naval  Staff,  Chief  Naval  Staff  gave 
a  ruling  on  the  distribution  of  destroyers  and  torpedo  boats  as 
they  become  ready  for  action: 

Torpedo  boat  T  ,,26"  belonging  to  4th  Torpedo  Boat  Flotilla,  will 
join  her  flotilla  in  West  areai   Because  of  the  smaller  draft, 
the  movement  is  easier  than  in  the  case  of  destroyers.   Destroyers 
Z  "29"  and  "33"  will  join  the  battle  group  of  Commanding  Admiral 
Task  Force  at  Alta  although  reinforcement  of  the  destroyers  in 
West  Area  is  also  desirable.   But  for  the  time  being,  even  the 
destroyers  already  there  are  short  of  fuel  and  above  all  it  is 
almost  impossible  to  move  destroyers  through  the  Channel  during 

the  summer  months.   The  question  of  reinforcing  the  destroyers 
in  the  West  Area  will  be  examined  in  the  autumn  when  more  units 
will  become  ready  for  action.  For  the  relative  directive  l/Skl 
I  op  1985/43  Gkdos.  Chef s0  see  War  Diary,  Part  C,  Vol.  d. 

Special  Items: 

I.    Armed  Forces,  High  Command,  Intelligence  Division,  Counter 
Intelligence  Section  reports  that,  after  difficult  negotiations, 
the  Japanese  Navy  has  promised  to  deliver  3000  tons  of  Navy- 
quality  fuel  for  the  BR/iKE  within  the  desire.1,  time.  The  oil  has 
to  be  especially  refined.   The  Japanese  Navy,  however,  refused 
to  set  up  reserves  of  Navy-quality  fuel  at  Pcnang  because  of 
its  own  oil  shortage,  but  under  took  that  supplies  of  Navy-quali- 
ty would  be  provided  there  in  good  time,  if  required,  as  the  sub- 
marines are  always  found  to  remain  in  that  base  for  some  time. 


-133-  CCi'FIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

It  is  true  that  the  military  director  at  Tokyo  has  been  unable 
to  extract  a  binding  promise,  but,  so  far,  the  Japanese  have 
never  let  us  down  in  regard  to  fuel.  There  will  be  even  less 
danger  of  this  if  the  submarines  operations  are  successful. 

II,  Commanding  Admiral,  Naval  Group  West  has  submitted  as  of 
30  Jun. -a  fundamental  statement  on  the  memorandum  of  Commanding- 
General,  Armed  Forces,  Netherlands  in  regard  to  coastal  defense, 
as  requested  by  Commanding  General,  Armed  Forces,  West.   For 
copy  as  per  l/Skl  18973/43  Gkdos,  see  War  Diary,  Part  C,  Vol.  Xa 

Commanding  Admiral,  Naval  Group  West  considers  it  necessary  for 
the  present  defense  system  to  be  reviewed  and  sets  out  the  fol- 
lowing as  basic  requirements  from  the  point  of  view  of  the  Navy": 

1,  The  basic  objective  of  defense  tactics  is  to  combat 
invading  ships  and  boats, 

2,  The  use  of  fortification-building  capacity  should 
be  centrally  controlled,, 

3e    The  effect  of  enemy  naval  artillery  in  preparatory 
"drum  fire"  should  not  be  over-estimated.   The  danger  to  the 
ships  is  greater  than  that  to  the  coastal  batteries  under  bombard- 
ment, 

4o    All  arms  assigned  or  suitable  to  be  used  from  the 
shore  and  the  waters  off  shore  must  be  more  or  less  concentrated 
along  the  coast  regardless  of  the  hoped  for  distribution  in  depth 
of  the  forces  for  the  land  battle. 

Naval  Staff,  Operations  Division  will  follow  up  this  matter  in 
cooperation  with  Naval  Staff,  Quartermaster  Division, 

III,  Naval  Staff,  Operations  Division  approved  the  request  of 
Admiral  Landing  Craft  and  Bases,  recommended  by  Naval  Group  West 
to  move  the  office  of  Admiral  Landing  Craft  and  Bases  from  Antwerp, 
It  is  unnecessary  for  it  to  remain  in  the  Belgian  -  Dutch  area. 

As  the  Baltic  Sea  is  coming  into  increasing  use  as  a  training 
area  for  submarines  and  light  naval  forces,  Naval  Staff,  Opera- 
tions Division  suggested  to  Quartermaster  Division  that  Admiral 
Landing'  Craft  and  Bases  and  all  his  training  units,  section  by 
section,  be  transferred  to  Jutland,  where  Limfjord  is  particularly 
suitable  for  preliminary  nautical  training  while  the  Skagerrak 
offers  opportunities  for  mine  laying, 

IV,  Armed  Forces,  High  Command,  Armaments  Division  gave  a  short 
account  of  the  execution  of  Commander  in  Chief,  Navy's  order  of 


-134-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

20  May  in  regard  to  expediting  the  installation  of  2  centimeter 

qudrupie-mount  guns  on  all  submarines  over  and  above  those  already 

planned*  .Letter  as  per  l/Skl  19612/43  Gkdos,  see  War  Diary, 
Part  B,  Vole  Vc 

Ve    Commander,  29th  Submarine  Flotilla  submitted  a  memorandum 
suggesting  that  300-ton  submarines  of  the  old  type  be  built  in 
series  for  use  in  the  Mediterranean.  In  view  of  the  plans  for 
other  types  and  materials  and  of  the  building  capacity  situa- 
tion, Commander  in  Chief,  Navy,  rejected  the  suggestion. 

Situation  on  11  Jul.  1943 

I0    Warfare  in  Foreign  Waters: 

1«    Enemy  Situation: 

No  special  reports  have  been  rcceivedo 

20         Own  Situation: 

No  reports  have  come  in  from  our  ships. 

Naval  Staff  has  continued  to  keep  Ship  "28"  informed  on  the 
political  situation*  Radiogram  0846  dealt  with  South  America 
and  British  -'American  relations ,  For  copy  of  radiogram  0846 
see  War  Diary,  Part  D  "Collection  of  Telephone  calls  and  radio 
messages,," 

II,   Situation  West  Area: 

lo    Enemy  Situation: 

Only  five  planes  were  detected  over  the  Bay  of  Bis- 
cay „  One  British  ship  was  located  at  1736  in  CG  5150  and  one 
at  1935  in  CG  4620c   The  convoy  "Faith"  reported  a  contact  plane 
at  2140  in  CF  363O  and  an  attack  by  three  planes  at  2200o 

Air  reconnaissance  by  3rd  i^ir  Force  reported  on  10  Jul.: 

At  1910,  one  cruiser  in  BF  7589  (60  miles  northwest  of  Ferrol) 
on  course  200°  speed  15  knots;  at  1926,  one  destroyer  in  BF 
7583,  course  200°,  speed  20  knots.  At  2100,  the  cruiser  and 
the  destroyer  were  on  course  200°  and  180°  respectively. 

In  reply  to  inquiry  by  Naval  Staff,  Group  West  stated  that  the 
report  on  the  cruiser  was  regarded  as  reliable,  .According  to 
further  details  from  Air  Commander,  Atlantic  Coast,  the  cruiser 

-135-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

probably  belongs  to  the  C  -  or  D  -  class.   The  Group  thought 
it  possible  that  the  cruiser  serves  as  support  for  destroyers 
on  anti-submarine  duty,  and  refers  in  this  connection  to  the 
sighting  by  submarines  of  one  heavy  and  one  light  cruiser  in 
BF  4872,  at  1000  on  2  Jul.  and  of  a  destroyer  in  BF  7738  on  9 
Jul*  as  well  as  the  recent  constant  locations  in  the  same  waters. 

At  2120  on  11  Jul.,  our  reconnaissance  reported  a  convoy  of  3 
steamers  with  3  escort  vessels  on  course  190°  at  medium  speed 
in  CF  3634. 

According  to  an  intelligence  report  of  10  Jul.  from  Portugal 
(Faro),  since  our  repeated  air  attacks  on  British  steamers  off 
the  south  coast  of  Portugal,  strong  air  reconnissance  of  British 
fighters  by  day  and  by  night,  has  been  observed  along  the  Algarve 
coast  from  Vila  Real  de  S, Antonio  to  Sagres-». 

2*    Own  Situation: 

Atlantic  Coast: 

One  ELM/J-mine  was  cleared  north  of  St.   Jean  de  luz. 
Escort  and  patrol  services  were  carried  out  without  incident, 

Channel  Coast: 

The  patrol  positions  were  not  occupied  due  to  the 
stormy  weather.  Escort  service  in  the  Channel  was  also  canrelled. 
Escort  of  Channel  Islands  traffic  was  carried  out  as  scheduled0 

In  regard  to  the  engagement  on  the  coast  of  northern  Brittany 
during  the  night  of  9  Jul.,  it  is  reported  that  Commander,  4th 
Torpedo  Boat  Flotilla  with  torpedo  boats  T  "24"  and  T  "25"  also 
made  contact  with  two  enemy  destroyers  at  a  distance  of  about 
5*3  km  .  (Tran.  Nt. :  53  km  seems-  to  be  given  erroneously  for  53 
hm),   Torpedo  beat  T  "25"  was  damaged  by  shell  gragments0   No 
hits  were  scored  on  either  side.  The  flotilla  later  searched 
unsuccessfully  for  minesweeper  M.  "153"  but  picked  up  minesweeper 
M  "£4n  £nd  escorted  it  back  to  its  own  formation.   For  Brief  re- 
port, sec  teletype  0020, 

Minesweeper  M  "153"  capsized  and  sank  in  very  bad  weather  after 
11  hours  had  been  spent  in  trying. to  salvage  her.   The  majority 
of  the  crew  was  rescued.   For.'  battle  report  of  Commander,  2nd 
Minesweeper  Flotilla,  see  teletype  0710,,  The  report  explains 
the  Flotilla  Commander's  decision  hot  to  return  to  look  for  M 
"153"  after  the  engagement  and  also  suggests  that  a  common 
ultra-short  wave-length  should  be  established  for  the  trans- 
mission of  orders  during  joint  operations  when  formations  of 

-I36-  CONFIDENTIAL 


CONFIDENTLY 
11  Jul.  1943 

different  kinds  arc  temporarily  combined  as,  in  this  case,  2nd 
Minesweeper  Flotilla  and  4th  Torpedo  boat  Flotilla,  Also,  the 
lack  of  a  Second  Doctor  was  again  felt, 

III.  North  Sea,  Norway,  Northern  Waters : 

North  Sea: 

Minesweeping  and  patrols  were  cancelled  duo  to  bad  weather. 
Nothing  else  was  reported. 

Norway,  Northern  Waters: 

1.  Enemy  Situation: 

Our  air  reconnaissance  reported  comparatively  active 
traffic  of  merchant  and  fishing  vessels  northeast  and  north  of 
Iceland  on  9,  10,  and  11  Jul,  For  details  sec  teletype  0806  and 
1355o  Naval  Staff  thinks  it  possible  that  bases  are  being  con- 
structed also  on  the  northern  coast  of  Iceland,   Group  North 
Fleet  has  been  ordered  to  assign  one  submarine  to  maintain  a 
constant  patrol  in  this  area,  during  which  any  opportunity  to 
attack  can  be  exploit ed0 

Our  Radio  Intelligence  detected  16  planes  on  reconnaissance 
flights  over  the  North  Sea  in  the  Shetland-Faeroes  area  and 
the  home  squadrons  of  the  Atlantic  Group  observed  11  planes  in 
their  area.  Russian  planes  reported  one  of  our  convoys  at  1730 
on  course  300°  in  the  Berlevaag  area. 

At  2351  on  8  Jul,,  a  Russian  submarine  was  sighted  off  Kongs- 
fjord  by  one  of  our  planes  and  attacked  with  depth  charges*  On 
9  Jul,,  the  coastal  A/S  listening  station  at  Nurmansaetti  picked 
up  submarine  noises' at  170°,  i,ea  inside  the  fjord,  from  0700 
till  O9OO4,  At  0945,  air  reconnaissance  confirmed  that  an  enemy 
submarine  had  been  sighted  leaving  Pctsamo  fjord.  From  1250  on 
9  Jul,,  the  Russian  batteries  "208"  and  "209"  fired  35  rounds 
on  the  steamer  RUIJA  and  working  boats  in  the  Petsamof jord,  11 
rounds  were  fired  in  return, 

2,  Own  Situation: 

At  1914  on  10  Jul,,  the  submarine  supply  ship 
UNITES  was  attacked  with  bombs  and  gunfire  by  8  British  planes 
near  Hellisoey,  Living  quarters  on  the  quarter-deck  were  de- 
stroyed by  fire.  The  ship  was  towed  in.  One  of  the  attacking 
planes  was  shot  down  by  the  UNITES.  Seven  of  our  own  FW  190 
pLines  were  unable  to  engage  the  enemy, 

-137-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

Thirty-one  ships  were  escorted  to  the  north  and  27  to  the  south0 

Eight  steamers  are  awaiting  escort  in  the  area  of  the  Arctic 
coast. 

Admiral,  North  Coast  reports  that  mine  layer  SKAGERR'i.K  and 
naval  landing  craft  have  laid  the  nine-barrages  NW  52  and  53 
according  to  plan.  For  the  barrage  report,  sec  teletype  1510, 

IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

1,    Enemy  Situation: 

In- the  forenoon,  enemy  artillery  put  up  ineffective 
harassing  fire,  sometimes  of  heavy  calibre,  against  the  coastal 
areas  in  Kronstadt  Bay.  Otherwise  the  situation  was  generally 
unchanged.  For  details,  see  Daily  Situation. 

2C         Own  Situation: 

No  special  reports  have  been  received  from  the  area 
of  Commanding  Admiral  Defenses,  Baltic.  A  Danish  fishing  cutter 
struck  a  mine  and  sank  in  the  Langcland  belt.  A  mine  exploded 
1000  meters  behind  a  convoy  12  miles  south  of  Moen.  No  other 
important  events  were  reported. 

V.  Submarine  Warfare: 

.,  1.    Enemy  Situation: 

Nothing  to  report. 

2„    Own  Situation: 

'  On  10  Jula,  U  "510"  sank  the  Swedish  steamer  SCAN- 
DINAVIA (2,475  BRT)  off  the  Brazilian  coast  in  EP  2984,  after 
the  crew  had  left  the  ship. 

On  9  Jul.,  U  "533"  was  chased  by  2  enemy  destroyers  in  BF  7738. 
The  suspicion  that  systematic  submarine  hunting  is  being  carried 
out  iii  that  area  is  increasingly  confirmed  (see  Situation  West 
/irea), 

VI.  Aerial  Warfare: 

British  Isles  and  Vicinity: 


-138-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

3rd  Air  Force  had  45  planes  in  operation  in  l/ost  Area  and  18  in 

the  Mediterranean.  During  the  day,  the  enemy's  activity  was 
confined  to-isolated  strafing  attacks  and  one  attack  by  a  small 
force  on  an  industrial  plant  near  Bet nunc.  At  1530,  one  enemy 
plane  was  shot  down  near  Ghent, 

Six  FW  200  planes  of  3rd  Group,  40th  Bomber  Uing  bombed  a  south- 
bound enemy  convoy  of  3  ships  320  miles  wast  of  Oporto  and  set 
fire  to  2  big  steamers,  one  of  them  of  20,000  BRT. 

Mediterranean  Theater: 

On  11  Jul.,  strong  enemy  air  forces  attacked  our  troops 
and  a  number  of  airfields  in  Sicily  and  Calabria.  The  troops 
suffered  considerable  casualties.  At  the  airfields,  some  of 
the  runways  were  heavily  damaged. 

German  bomber  formations  gave  continuous  and  successful  support 
to  the  offensive  of  the  "Hermann  Gocring"  tank  division  and 
heavy. bomber  formations  attacked  shipping  and  landing  targets 
near  Gela  in  the  morning  hours  and  during  the  day. 

The  Italian  Air  Force  used  heavy,  light  and  torpedo  aircraft 
for  attacks  in  the  southeastern  part  of  Sicily, 

German  Air  Force  successes  since  the  evening  of  10  Jul. : 

Sunk  or  hit:  20  ships  for  about  100,000  BRT,  one  battleship,  two 
cruisers  and  an  unspccifiablc  number  of  other  small  landing 
craft.  For  details,  sec  Daily  Situation. 

During  the  night  of  11  Jul*,  Reggio  and  San  Giovanni  were  at- 
tacked by  small  enemy  air  forces.  On  11  Jul.,  a  total  of  4 
enemy  planes  was  shot  down. 

Situation  reports  from  2nd  Air  Force  give  a  comparatively  favor- 
able picture  of  the  operations  of  the  i;Hermann  Gocring"  Tank 
Division.  Besides  supporting  that  division, 2nd  Air  Force  is 
using  its  bomber  formations  to  hinder  the  supplying  of  the  enemy 
forces  in  the  bay  south  of  Syracuse  and  south  of  Gela. 

The  large  amount  of  reconnaissance  information  from  2nd  Air 
Force  is  listed  under  Warfare  in  the  Mediterranean  No.  1, 

Our  air  force  losses  arc  not  reported. 

Eastern  Front: 

On  10  Jul.,  85   enemy  planes  were  shot  down  on  the  Army 
front. 

-139-  00  NFIDENTIAL 


coi;fidektial 

11  Jul.  1943 

Nothing  of  importance  was  reported  from  the  areas  of  4th  and 
5th  Air  Forces. 

VII o  Warfare  in  the  Mediterranean  and  Black  Sea: 

1.    Enemy  landing  in  Sicily: 

During  the  night  of  10  Jul.,  active  shipping  traf- 
fic was  again  observed  in  the  coastal  ar^a  between  Catania  and 
Licata.  Landing  activity  increased  on  the  evening  of  10  Jul. 
^specially  near  Gcla.  More  transports,  freighters  and  warships 
are  approaching  from  the  Western  Mediterranean  as  already  noted 
and  reported  in  detail  on  10  Jul* 

At  0018  on  11  Jul.,  5  big  ships  and  50  -  100  landing  boats  were 
reported  off  Augusta.  Otherwise,  in  the  early  morning  there 
were  no  important  changes  in  the  landing  area  at  the  south- 
eastern end  of  the  island.  German  Naval  Command,  Italy  reported 
at  0900: 

"Off  Syracuse,  many  ships  of  all  types  and  many ' Landing  vessels. 
Between  Avola  and  Cape  Passero,  about  100  ships.  Sector  Cape 
Passero  -  Pozzallo,  150  ships  along  the  coast  and  with  warships 
behind  them*  Sector  Pozzalla  -  Gela,  only  a  few  landing  vessels. 
Sector  6  miles  east  of  Gela  to  16  miles  west  of  Gcla,  concentra- 
ti;::  f  ships  (60  ships  in  one  line  were  sighted),  In  the  same 
area,  an  approaching  convoy  of  20  ships.  In  the  Licata  area, 
50-60  ships. M 

Second  evaluation  of  photographic  air  reconnaissance  of  the 
area  from  Empedocle  to  Augusta  on  10  Jul.  reveals: 

6  cruisers,  22  destroyers,  14  escort  vessels,  2  minesweepers, 
2  corvettes,  11  artillery  boats,  1  PT  boat,  2  motor  boats,  9 
auxiliary  war  vessels,  109  L3T,  93  LCT  of  350  tons,  4  LCT  of 
250  tons,  56  LCT  of  120  tons,  4  LSG,  84  LCI,  8  L5F,  147  LCM, 
189  LCT,  66  ICA,  2  LSJ  for  a  total  of  14,265  BRT,  2  freighters 
and  passenger/cargo  steamers  totalling  15,000  BPlT,  65  freighters 
totalling  406,000  BRT. 

The  eastbeund  convey  of  10  steamers  reported  north  of  Bone  at 
1720  on  10  Jul.  was  again  confirmed  on  an  easterly  course  north- 
cast  of  Cape  Serrat  at  0145 • 

From  1730  on  10  Jul.  till  noon  of  11  Jul.,  10  enemy  submarine 
positions  were  reported  in  the  direct  vicinity  of  Sicily  and 
Sardinia,  One  of  the  boats  was  south  of  Toulon  and  a  second 
one  near  Elba. 

-1^0-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943  . 

During  the  night  of  10  Jul.,  4  be  .its  of  3rd  PT  boat  Flotilla  • 
made  a  thrust  into  the  southern  part  of  the  Straits  of  Messina, 
unfortunately  without  contacting  the  enemy,  passed  Messina  at 
0200,  on  its  way  back  and,  it  received  no  radio  order  to  enter 
Messina,  put  in  to  Naples  at  neon  to  refuel  and  take  on  tor- 
pedoes and  for  a  short  engine  repair.  German  Naval  Command, 
Italy  intends  to  dispatch  the  flotilla  for  operations  off  Cape 
Passcro  in  the  night  of  12  Jul.  Operations  by  the  Italian  PT 
boats  were  also  unsuccessful  last  night. 

With  such  an  extraordinary  accumulation  of  objectives,  ' 
it  should  be  possible  for  these  boats  to  gain  successes, 
if  properly  imployed,  even  in  the  short  summer  night s0 
Undoubtedly  the  absence  of  3rd  PT  Boat  Flotilla  -  due  to 
an  accident  -  is  felt.   His  replacement  by  an  experienced 
PT  boat  commandant  is  urgently  necessary  and  steps  are 
underway  to  assign  Operations  Officer  of  Commander  PT 
Boats  to  the  post. 

In  accordance  with  a  directive  from  Chief,  Naval  Staff,  the 

following  order  has  .been  issued  to  German  Naval  Command,  Italy 
with  copy  to  Commander  Submarines,  Italy i  '  J 


PT  Boat  Flotilla  to  be  ordered  into  the  battle  for 


Sicily, 


2.    if  the  situation  should  necessitate  a  withdrawal, 
a  base  for  3rd  and  7th  PT  Boat  Flotillas  must  be  provided  in 
southern  Italy  east  of  the  Messina  Strait,   (Crotone,  Taranto)u 
For  copy  of  the  relevant  order  l/Skl  I  op  19636/43  Gkdos„  see 
teletype  1716. 

The  distribution  and  state  of  readiness  of'  the  Italian  naval 
forces  is  reported  by  German  Naval  Command,  Italy  in  teletypes 
2015  and  2317»   Two  battleships  ready  for  action, '3  cruisers  and 
&  destroyers  at  Spezia,  3  light  cruisers  and  2  destroyers  at 
Genoa,  1  cruiser  and  1  destroj^er  at  Taranto.  The  other  2  destroy- 
ers and  24  torpedo  boats  are  distributed  in  the  harbors  of  the 
Tyrrhenian  and  Aegean  Seas  or  are  engaged  on  escort  service. 
The  vessels  have  had  steam  up  since  10  Jul.   It  is  planned  to 
use  them  only  if  the  enemy  is  not  superior  in  strength  and  they 
therefore  are  not  expected  in  the  Sicilian  area  at  present. 

Naval  Staff  fears  that  Commanding  Admiral,  German  Naval 
Command  Italy  is  right  in  this  forecast  and  regrets  it 
exceedingly,.  For  the  Italian  Fleet  the  moment  has  now 
come  for  which  it  has  been  so  carefully  preserved.   There 
is  no  excuse  for  failing  to  make  use  of  the  strong  fight- 
ing power  of  the  ships  in  a  situation  in  which  the  gravest 

-141-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

decisions  are  at  stake.  Nor  is  it  to  be  expected  that  a 
future  opportunity  will  offer  for  operations  against  an 
inferior  enemy.  It  is  rather  to  be  feared'  that  the  op- 
portunity for  effective  operation  is  now  being  offered 
for  the  last  tine. 

Of  the  13  operational  Italian  submarines,  (in  which  no  immediate 
increase  will  be  forthcoming)  3  are  on  the  Algerian  coast  between 
Cape  de' Fer  and  Tabarca,  1  northwest  of  Trapani,  1  northwest  of 
Palermo,  5  on  the  east  coast  of  Sicily  between  Cape  Passero  and 
Catania,  3  en  route  from  the  Tyrrhenian  Sea  to 'the  east  coast 
of  Sicily  via  the  Strait  of  Messina,   By  night,  12-13  submarines 
will  be  on  position. 

Of  our  own  submarines  U  "407"  has  been  ordered  to  the  attack 
area  southwest  of  latitude  of  CN  3282,  U  "453".  is  permitted  free 
lance  operations  in  map  squares  26,  31  and  34  CN. 

Situation  Report  No.  967  of  10  Jul.  by  Army  General  Staff, 
Foreign  Amies,  West  states,  among  other  things,  that  parts  of 
three  British,  one  Canadian  and  three  USA  divisions  are  partici- 
pating in  the  landing  and  that  these  forces  are  divided  into 
one  \tfestern  and  one  eastern  landing  group.  The  enemy  has  suc- 
ceeded in  establishing  the  following  bridgeheads  on  the  island: 
Near  Lie ata, '  about  5  km  wide;  at  Gela,  about  10  km  wide;  at 
Cape  Passero,  across  entire  southern  tip  of "Sicily;  at  Avola, 
there  is  apparently  only  a  small  bridgehead.  Near  Syracuse, 
the  Maddalena  peninsula  southeast  of  the  town  was  apparently 
occupied  by  landings  from  the  air  and  from  the  sea,  and  ter- 
ritory west  of  the.  town  was  taken  by  air-borne  troops,,  Glider 
landings  were  reported  at  the  mouth  of  the  Anapo  River,  near 
Syracuse  and  on  the  Maddalena  Peninsula,  and  parachute  landings 
at  San  Pictro  arid  -  according  to  unconfirmed  reports  -  also  near 
Syracuse  and  east  of  .Coniso* 

The  main  point  of  the  attack  is  clearly  the  southeastern  sector 
of  the  island*  The  first  objective  is  probably  to  gain  a  line 
approximately  between  Gela  and  Catania,   In  view  of  the  strength 
of  the  forces  still  avaiLable  in  North  Africa,  it  is  possible 
that  the  tactical  aim  is  to  draw  off  strong  German  forces  from 
the  western  part  of  the  island  in  order  to  make  further  landings 
there.  It  is  regarded  as  most  serious  that  reports  from  landed 
enemy  troops  -  intercepted  by  reliable  sources  -  give  the  im- 
pression that  the  resistance  of  our  forces  on  the  coast  is  not 
particularly  strong.  Army  General  Staff  considers  that  opera- 
tions against  Sardinia  and  in  the  eastern  Mediterranean  (Aegean 
area)  are  still  possible  in  view  of  the  strong  enemy  forces  still 


-I42-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul,  1943 

available  and  great  amount  of  shipping  space. 

Until  the  evening  of  10  Jul.,  according  to  information  re- 
ceived by  Naval  Staff,  Naval  Intelligence  Division,  110  LST 
and  337  LCT  or  LCJ  were  operating  between  Licata  and  Syracuse 
and  35  LST  and  16  ICT  or  LCJ  were  approaching  from  northern 
Tunisia.  Thus  the  following  forces  are  engaged  in  the  Sicilian 
operation:  145  1ST  =  95$  of  the  presumed  total  in  the  Medi- 
terranean and  355  LCT  and  LCJ  =  70/6  of  the  total  in  the 
Mediterranean.  Of  the  remaining  vessels  of  this  kind,  one- 
third  is  in  the  Eastern  Mediterranean  and  two-thirds  in  the 
jumping-off  bases  between  Oran  and  Tunis. 

At  least  105  freighters  have  been  noted  in  the  operations  a- 
gainst  Sicily  and  60  en  route  to  that  theatre.  Thus,  165 
freighters  are  engaged,  totalling  at  least  1,000,000  BRT  =■ 
50$  of  the  total  known  to  be  in  the  Mediterranean.  Twelve 
transports  are  engaged  and  6  are  en  route  to  Sicily.  There- 
fore, altogether  18  transports  for  about  210,000  BRT  =  20% 
of  the  total  tonnage  are  participating  in  the  operation. 

Of  the  remaining  50  per  cent  of  freighter  tonnage  one-fifth 
is  -in  Gibraltar,  two-fifths  in  the  Eastern  Mediterranean  and 
the  rest  in  the  jumping  off  harbors.  One-third  of  the  trans- 
ports is  in  the  Eastern  Mediterranean  and  two-thirds  in  the 
jumping-off  harbors  with  the  exception  of  two  ships  which  are 
at  Gibraltar* 

Army  General  Staff,  Foreign  Armies  Uest,  Group  South,  Group 
West  and  German  Naval  Command,  Italy  have  been  informed  ac- 
cordingly. For  copy  of  this  instruction  as  per  l/3kl  19656/43 
Gkdos.  see  teletype  1010, 

It  should  be  kept  in  mind  that,  due  to  the  comparatively  short 
run  from  Sicily  to  the  Tunisian  coast,  landing  vessels  can  be 
quickly  returned  so. that  landing  craft  for  new  operations  can 
be  speedily  made  ready..  The  same  applies  to  freighters  and 
transports.  . 

2.    Enemy  Situation  in  other  parts  of  the  Mediterranean: 

Little  incoming  or  outgoing  steamer  traffic  was 
observed  at  Gibraltar.  Reports  on  the  ships  in  the  harbor  were 
incomplete  due  to  bad  visibility. 

An  Intelligence  report  of  2  Jul.  from  London  via  Portugal  states 
that  Anglo-American  troops  are  preparing  for  an  attack  on  the 


-143-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

center  of  the  Italian  coast  between  Piombino  and  Port  Ercole 
and  that  a  simultaneous  attack  will  be  made  on  Corsica  by- 
Anglo-American  fleet  formations  together  with  the  remainder 
of  the  French  fleet,  French  soldiers  now  training  in  Tunis 
would  be  used  as  parachutists  against  that  islando   Sardinia 
is  indicated  as  another  objective.   In  regard  to  the  date, 
it  is  stated  literally:   "In  the  days  after  the  big  Russian 
offensive." 

3o    Own  Situation  in  other  parts  of  the  Mediterranean: 

Naval  Staff  has  instructed  German  Naval  Command, 
Italy,  with  copy  to  Group  South,  Admiral  Aegean,  to  transfer 
the  boats  of  12th  Motor  Minesweeper  Flotilla  to  the  Aegean  ac- 
cording to  plan,  as  they  become  ready. 

The  mine  layers  BRAND-^NBURG  and  P0MME3N  with  the  Italian 
destroyer  VIVALDI  completed  the  mine-task  on  the  south  coast 
of  Sardinia  as  scheduled  and,  on  their  way  back,  were  attacked 
by  6  torpedo  planes  off  the  east  coast  of  Sardinia  at  1430 
Five  or  six  torpedoes  were  avoided*  Three  planes  were  shot 
down.   Casualties  were  caused  by  gun  fire  from  the  planes. 
The  commanding  officer  of  the  BRANDENBURG  was  killed.  Both 
ships  are  in  operational  condition  at  Maddalena. 

Group  '.Jest  reports  that  mine  task  K  3  B  has  been  carried  out 
according  to  plan. 

Three  boats  of  12th  Motor  Minesweeper  Flotilla  moved  from 
Marseille  to  Leghorn. 

4o    Sea  Transport  Situation: 

While  e  scorting  two  steamers  from  Naples  to  Palermo 
the  fast  escort  vessel  SG  "13"  was  hit  by  a  torpedo  83  miles 
south  of  Naples  but  apparently  remained  afloat.  In  the  Sardinia- 
traffic,  the  steamer  TELL  (1,349  BRT),  escorted  by  the  fast 
escort  vessel  SG  "11",  was  sunk  by  an  enemy  submarine  east  of 
Corsica,  Other  traffic  was  carried  out  without  incident 0 

5.    Area  Naval  Group,  South: 

Aegean: 

Enemy  Situation: 

According  to  an  intelligence  report  from  Algeciras, 
of  10  Jul.,  a  Royal  Air  Force  officer  stated  that  a  landing  in 


-1A4-  CONFIDENTIAL 


CONFIDENTIAL 
11  Jul.  1943 

the  Balkans  was  imminent. 

Own  Situation: 

Four  boats  of  12th  Motor  Minesweeper  Flotilla, 
put  in  to  Salamis  from  the  Trikeri  barrage. 

< 
During  an  enemy  air  attack  on  Palo ech era  (Peloponnese)  at 
noon  on  10  Jul,,  a  low  flying  plane  caused  damage  and  casual- 
ties on  an  Italian  PT  boat.  One  of  the  attacking  planes  was 
shot  down0  Two  Arado  planes  were  sent  out  to  hunt  an  enemy 
submarine  sighted  45  miles  west  of  Lemnos  in  the  afternoon 
of  11  Jul,  A  Greek  manned  dredger'  sank  in  the  Corinth  Canal. 
Shipping  traffic  is  not  obstructed. 

In  regard  to  the  submarine  attack  in  the  harbor  of  Castro n  on 
Chios,  it  has  been  additionally  reported  that  a  torpedo  fired 
in  the  direction  of  thu  Army  mine-dump  was  prematurely  ex- 
ploded by  striking  a  rock  below  the  surface.  Five  motor 
sailing  vessels  were  destroyed  and  one  was  damagedc 

Convoy  and  transport  traffic  was  carried  out  without  incident. 

For  the  battle  report  by  Flotilla  Commander,  21st  Submarine 
Chaser  Flotilla  on  the  engagement  between  Q-ship  G  "41"  and  an 
enemy  submarine  on  8  Jul,,  see  teletype  1300,  According  to  the 
report,  the  submarine  was  v^ry  heavily  damaged,  if  not  destroyed, 

Group  South  has  advised  Naval  Staff,  for  information,  that  it 
has  again  been  indicated  to  German  Naval  Command,  Italy  that 
this  is  the  last  opportunity  to  send  supplies  via  the  Adriatic 
as  possible  developments  of  the  situation  in  the  Sicilian  area 
may  stop  the  traffic  perhaps  almost  immediately  even  before 
actual  operations  against  the  Greek  area  beginc   (See  teletype 
1850) . 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report© 

Own  Situation: 


weather. 


PT  boats  were  not  in  operation  because  of  bad 


Submarine  U  "20"  left  Constantza  for  operations  against  the 
enemy* 

-145-  CONFIDENTIAL 


(EVIDENTIAL 
11  Jul.  1943 

The  minesweeper  escort  of  the  138th  Anapa  transport  cleared 
two  more  mines  in  the  Kertch  Strait.  It  is  reported  as  of 
0108  on  9  Jul.  that  two  vessels  bombarded  the  oil  refinery- 
plant  at  Berdjansk  and  then  made  off c  Naval  artillery  light- 
ers r,l"-"3"  are  at  Mariupol,  naval  artillery  lighters  "4", 
"8V'9",  and  "10"  are  at  Temriuk  and  naval  artillery  lighter 
"11"  at  Kertch e 

Ferry  traffic  across  the  Kertch  Straits  was  hindered  by  bad 
weather.  Supply  transports  and  tug  convoys  along  the  Crimean 
Coast  were  cancelled,, 

VIII.  Situation  in  East  Asia: 

Nothing  to  report e 


12  Jul0  1943 

Items  of  Political  Importance: 

According  to  Reuter,  the  U,S,  Secretary  for  War,  Stimson,  has 
arrived  in  London  for  a  conference.  This  has  led  the  foreign 
press  into  speculations  on  Allied  plans  for  new  operations. 

The  Turkish  -  Syrian  frontier  has  again  been  closed. 

-a  report  from  the  U.S.  ft>vy  Department  states  that,  in  the 
first  half  of  1943,  American  shipyards  built  more  than  6,000 
warships,  or  250$  more  than  in  the  same  period  in  19420  The 
War  Department  has  announced  that  more  than  9,000  planes  were 
built  for  the  fleet  during  the  first  half  of  1943.  This 
figure  was  equal  to  the  whole  year's  production  in  1942,  The 
total  number  of  U.S.  Navy  casualties  since  the  outbreak  of 
war  are- given  as  27,079  men  comprising  8,235  killed^  4,736 
wounded.  10,523  missing  and  3,5&5  taken  prisoner. 

Radio  Algier  announced  on  11  Jul.  that  contact  has  been  es- 
tablished .between  the  Allied  Supreme  Command  and  the  resis- 
tance movement  in  France.   At  the  same  time  that  the  "Second 
Front"  was  opened  on  the  continent,  the  "Secret  Front"  in 
France  was  given  detailed  instructions  by  the  allied  Supreme 
Commando 

Conference  with  Chief,  Naval  Staff : 

A#    Raw  material  quotas: 

-UV6-  CONFIDENTIAL 


CONFIDENTIAL 
12  Jul,  1943 

Chief,  Bureau  of  Naval  Armament  asked  for  a  de- 
cision from  Commander  in  Chief,  Navy  as  to  whether  a  further 
request  should  be  made  to  the  Reich  Ministry  for  Armament  and 
Munitions  for  the  extra  iron  required  for  the  3rd  quarter  of 
1943  (20,000  tons  for  artillery  ammunition,  10,000  tons  for 
mines,  depth  charges  and  nets)B   Commander  in  Chief,  Navy  was 
at  first  of  the  opinion  that  these  quantities  could  be  requisi- 
tioned without  difficulty  from  the  ship-building  steel  stocked 
in  the  Dutch  area.   The  quotas  to  be  assigned  by  the  Reich 
Ministry  for  Armaments  and  Ammunition  under  the  1943  naval 
building  program  could  be  correspondingly  cuta   In  the  opinion 
of  Naval  (Ship)  Construction  Division  this  would  cause  no 
difficulties.   It  would,  however,  be  equally  feasible  to  avoid 
this  detour  and  achieve  the  same  end  by  a  direct  request  as 
the  ministry  felt  itself  just  as  responsible  for  providing 
material  for  weapons  as  for  ship  building. 

Commander  in  Chief,  Navy  decided  that  the  latter  method  should 
be  adopted. 

Furthermore,  Commander  in  Chief,  Navy  decided  that  the  system 
of  special-purpose  quotas  should  be  maintained  for  naval  re- 
quirements not  comprised  in  the  1943  naval  construction  pro- 
gram.  The  distribution  of  these  raw  materials  would  thus  re- 
main in  the  bands  of  the  Navy*  This  arrangement  is  in  ac- 
cordance with  the  agreement  stipulated  between  Commander  in 
Chief,  Navy  and  Reich  Minister  Speer0 

B*    Protection  of  submarine  In ider  c t  ftsfrg actions'  and  repair : 

Naval  (Ship)  Construction  Division  stated  that 
present  plans  for  concrete  shelters  over  the  docks  are  not 
sufficient  even  for  half  of  the  submarines  under  construction,, 

Nor  could  the  situation  be  adequately  remedied  by  withdrawal 
to  the  eastern  area© 

Naval  Shore  Construction  .Division  submitted  a  suggestion  f or 
the  construction  of  an  entirely  new  submarine  building  yard, 
to  be  completely  covered  by  concrete  shelters  and  organized 
in  accordance  with  the  principles  of  the  most  modern  serial 
production.  Yearly  output  would  be  at  least  52  boats  and 
building  time  would  be  18  weeks  from  the  laying  of  the  keel 
until  leaving  the  yard. 

Naval  Construction  Division,  Supply  and  Finance  Branch  pointed 
out  that,  although  this  project  would  in  the  long  run  yield 
better  results  than  the  immediate  measures  suggested,  the  main 


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CONFIDENTLY 
12.  Jul.  1943 

thing  at  tho  moment  is  to  achieve  speedy  results. 

Commander  in  Chief,  Navy  decided  that  both  programs  should 
be  started  as  urgent  measures  and  that  the  industrial  capacity 
required  for  protected  submarine  building  on  a  large  scale 
should  be  requested. 

C.    Situation: 

Ie    Situation  of  the  Amy: 

There  are  no  important  changes  in  the  Opera- 
tion "Citadelle,"  No  great  progress  has  been  possible  against 
the  very  strong  enemy.   In  the  northern  part  of  the  battle 
front,  a  regrouping  of  our  forces  has  become  necessary. 

II.  Chief j  Naval  Staff.  Naval  Intelligence  Di- 
vision reported  on  the  status  of  enemy  landing  vessels  and' 
tonnage  in  connection  vdth  the  landing  operation  in  Sicily, 
according  to  the  statement  in  War  Diary  of  11  Jul. 

Chief,  Naval  Staff,  Operations  Division  remarked  that,  accord- 
ing to  information  so  far  received,  the  situation  in  Sicily 
appeared  to  be  developing  not  unfavorably,,  Parts  of  the  "Her- 
mann Goering"  tank  division  have  reached  the  coast  near  Gela. 
The  battle  is  beginning. 

In  a  highly  restricted  circle: 

III.  Report  by  Chief,  Naval  Staff,  Operations 

Division,  Operations  Branch,  on  the  distribution  and  state  of 

readiness  of  our  own  and  Italian  naval  forces  as  per  statement 
in  War  Diary  of  11  Jul. 

Chief,  Naval  Staff  ordered  that  the  transfer  of  the  operations 
officer  of  Commander  PT  Boats  to  3rd  PT  ~Bo»t  Flotilla  to  re- 
place the  Flotilla  Commander  who  is  cut  of  action,  should  be 
expedited  in  every  waya 

After  scrutinizing  the  question  of  our  own  and  Italian  opera- 
tions, Chief,  Naval  Staff  ordered  that  the  following  directive 
be  sent  to  German  Naval  Command,  Italy: 

"The  following  is  to  be  transmitted  immediately  to  Admiral 
Riccardi  as  a  telegram  from  Commander  in  Chief,  Navy: 

According  to  our  information,  it  may  be  presumed  that  the  enemy 

-148-  CONFIDENTIAL 


CONFIDENTIAL 
12  Jul.  1943 

attack  in  Sicily  is  being  made  with  such  strong  forces  that 
further  large-scale  operations  in  other  places  are  not  to  be 
expected  before  the  end  of  the  Sicilian  campaign. 

A  successful  defense  against  this  attack  is,  therefore,  of 
decisive  importance  to  Italy  and  to  the  whole  conduct  of  the 
war0 

In  my  opinion  it  is  of  the  utmost  importance  for  the  success 
of  our  troops  that  the  naval  forces,  besides  maintaining  our 
supply  traffic,  should  above  all  attack  the  enemy's  rear  com- 
munications on  which  the  existence  of  the  invading  forces 
depends . 

I  have  therefore  ordered  all  German  PT  boats  to  be  used  in  the 
defense  of  Sicily  since  I  expect  good  results  from  their  opera- 
tions against  the  massed  enemy  targets  on  the  Sicilian  coast. 

But  as  I  see  the  situation,  operations  by  Italian  light  sur- 
face forces,  especially  at  night  would  be  even  more  successful,, 

Furthermore,  I  also  think  it  advisable  to  move  the  Italian 
battleships  closer  to  the  battle  area  in  order  that  they  may 
be  ready  to  act  in  this  decisive  situation. 

With  friendly  greetings,  yours  most  respectfully 

Doenitz,  Grand  -  Admiral," 

IV „   Chief,  Naval  Staff,  Operations  Division  reported  thatj 
for  the  submarine  mining  operations  with  the  new  firing  de- 
vices, 250  TMB-mines'  will  be  ready  by  "the  end  of  August  and 
600  TMC-mines  frcm  September.   In  order  for  this  firing  to 
function  properly,  care  must  be  taken  that  the  mine  is  not 
prematurely  activated  by  heavy  seas.   It  is  not  planned  to  use 
the  new  firing  device  in  SMA-mines  as  these  can  only  be  used 
as  ground-mines. 

Chief,  Naval  Staff  approved  these  plans. 

Special  Items; 

I.    In  the  evening,  the  following  reply  to  Commander  in 
Chief,  Navy's  personal  teletype  to  Admiral  Riccardi  xvas  re- 
ceived from  Commanding  admiral,  German  Naval  Command,  Italy: 

"Riccardi  will  submit  the  teletype  to  the  Duce  and  will  then 
reply.   Yesterday  the  Duce  gave  orders  that  the  battleships 

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CONFIDENTIAL 
12  Jul.  1943 

were  not  to  be  used  for  the  present  because  continuous  enemy- 
air  reconnaissance  makes  surprise  operations  impossible  and 
the  numerical  weakness  of  our  sea  and  air  forces  makes  combat 
with  a  fore-warned  enemy  hopeless »  All  PT  boats  and  submarines 
have  been  ordered  into  action.  The  situation  on  land  is 
serious.  Both  on  land  and  at  sea  the  trouble  lies  in  the  weak- 
ness of  the  Axis  air  force  which  would  have  to  be  trebled  in 
order  to  gain  some  measure  of  success." 

For  order  l/Skl  1989/43  Gkdos,  Chefs,  and  the  message  re- 
ceived as  per  l/Skl  1995/43  Gkdos.  Chefs,  see  War  Diary, 
Part  C,  Vol.  XIV. 

Comment  will  follow  after  submission  to  Chief,  Naval  Staff, 

II,   The  results  of  the  discussion  held  on  5  Jul,  between 
Commander  in  Chief,  Navy  and  Reich  Minister  Speer  on  the  per- 
formance of  the  1943  naval  construction  program  (see  War  Diary 
5  Jul.)  are,  briefly,  as  follows: 

10  Commander  in  Chief,  Navy  pointed  out  that,  (at 
this  stage)  in  1943*  only  the  Reich  Minister  for  Armaments 
and  Ammunition  was  in  a  position  to  carry  out  so  extensive 
a  project  as  the  1903  naval  construction  program,  Reich  Min- 
ister Speer  declared  that  he  was  prepared  to  carry  out  the 
program  and  to  assume  responsibility  for  it.  The  purpose  of 
the  discussion  was  to  arrange  for  cooperation  and  for  dis- 
tribution of  tasks, 

2,    Commander  in  Chief,  Navy  explained  that  the  bulk 
of  the  research  and  development  work  would  have  to  remain  under 
the  Navy  for  the  following  reasons:  many  years'  militarj^  ex-' 
perience,  strategic  and  tactical  requirements,  use  of  weapons, 
ships'  readiness  for  action,  leak  repair  service,  sea  and  weath- 
er conditions,  the  questions  of  manning,  supervision  and  in- 
spection, space  on  board,  consultations  with  operational  units, 
and  the  coordination  and  adjustment  of  operational  views  which 
must  be  done  by  High  Command,  Navy  which  is  correspondingly 
staffed,   The  commission  must  be  headed  by  a  naval  officer. 

Result:  Establishment  of  a  "Central  Commission  for  Shipbuild- 
ing," The  task  of  the  commission  is  to  develop  ship  types  ac- 
cording to  military  and  technical -requirements  and  experience 
of  armament  production,  and  to  prepare  the  designs  and  final 
drafts.   Commander  in  Chief,  Navy  will  assign  a  naval  officer 
as  director  of  the  commission  as  well  as  the  naval  members. 
Reich  Minister  Speer  will  provide  the  production  specialists, 


-150-  CONFIDENTIAL 


CONFIDENTIAL 


12  Jul,  1943 


constructors  and  scientists.  If  the  Central  Commission  should 
be  unable  to  reach  agreement,  the  decision  will  rest  with  Com- 
mander in  Chief,  Navy.  The  development  of  special  weapons  will 
also  remain  under  the  Navy  but,  from  the  outstart,  with  the 
participation  and  support  of  the  Reich  Ministry  for  Armaments 
and  Ammunition, 

3,    The  production  and  the  responsibility  therefor 
will  be  assumed  by  xieich  Minister  Specr  and  his  co missions,, 
A  new  "Central  Committee  for  Shipbuilding",  with  special  com- 
mittees and  working  committees,  \vill  be  formed  under  the  Reich 
Minister  for  Armaments  and  Ammunition,  General  Director  Merker 
is  being  considered  for  the  post  of  director.  Merchant  ship 
building  will  also  be  handled  by  the  Central  Committee,  A 
separate  special  committee  for  ship  machinery  construction 
will  continue  to  exist  within  the  Central  Committee  but  it  is 
planned  to  exclude  engines  and  to  ccmbine  them  all  (vehicle-, 
tank-,  ship-,  and  aircraft  engines)  in  a  special  "Central  Com- 
mittee for  Engines,"  It  is  planned  to  dissolve  the  present 
"Central  Committee  for  naval  underwater  weapons"  and  to  at- 
tach the  various  special  committees  to  the  central  commit- 
tees for  the  similar  production. 

The  committees  will  be  responsible  for  the  control  of  pro- 
duction, i.e.,  new  construction  as  well  as  maintenance  and 
repair,  for  employment  of  firms,  and  for  execution  and  super- 
vision of  the  orders  within  the  specified  times.  High  Commend 
Navy  will  issue  the  orders,  control  acceptances,  including 
those  now  current,  by  the  Naval  Construction  Supervisors  and 
will  handle  the  accounts. 

For  copy  of  the  relevant  report  by  Chief,  Bureau  of  Naval  Arm- 
aments see  War  Diary  Part  B,  Vol,  V, 

III,  In  accordance  with  Chief,  Naval  Staff's  decision  on  the 
Italian  request  that  the  departure  from  Bordeaux  of  the  last 
two  rubber-transport  submarines  now  being  placed  in  readiness, 
be  cancelled, (see  War  Diary,  8  and  9  JulJ,  Chief  of  Staff, 
Naval  Staff  ha  s  sent  the  following  letter  to  the  Italian  Ad- 
miral  attached  to  Naval  Staff: 

"The  question  of  whether  it  is  at  the  moment,  advisable  for  ' 
the  two  AQUILA  boats  (Finzi  and  Bagnolini)  still  in  Bordeaux, 
to  sail  at  an  early  date,  has  been  closely  studied  by  Naval 
Staff »  In  order  to  reinforce  their  anti-aircraft  defense,  Naval 
Staff  has  provided  one  2  cm  quadruple  mount  inti-aircraft  gun 
for  each  boat.  The  boats'  departure  was  postponed  until  these 
new  anti-aircraft  weapons  were  installed.  Naval  Staff  believes 


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CONFIDENTIAL 
12  Jul.  1943 

that  this  step  will  greatly  improve  the  conditions  for  the 
submarines'  departure  from  the  Bay  of  Biscay  and  that  when 
the  installation  is  completed,  there  is  no  further  need  to 
postpone  the  submarines'  departure  on  tactical  grounds. 

The  supply  situation  of  the  Axis  powers,  as  set  out  by  Com- 
mander in  Chief,  Navy  in  his  letter  to  His  Excellency  Ric- 
cardi,  makes  it  advisable,  in  the  opinion  of  Naval  Staff, 
to  expedite  the  dispatch  of  the  two  AQUHA  boats  as  much 
as  possible  and  to  emphasize  once  more  the  great  importance 
for  the  general  war  effort,  of  using  the  remaining  AQUILA 
submarines  and,  possibly,  other  Italian  transport  sub- 
marines to  fetch  raw  caoutchoue." 

IV.  Due  to  the  incidents  reported  in  connection  with  the 
bringing-in  of  submarine  U  "564%  Commanding  Admiral,  Iteval 
Group  West,  by  order  of  Naval  Staff,  has  issued  a  basic  di- 
rective to  the  destroyer  and  torpedo  boat  flotillas  attached 
to  the  group  concerning  the  "Dispersal  of  boats  sailing  in 
company  in  the  war  zone.-/'  Information  copies  of  the;  direc-  ' 
tive  were  sent  to  Commander,  Destroyers,  Commanding  Admiral, 
Defenses  West,  Group  North  Fleet  and  High  Command  Navy,  Naval 
Staff. 

For  copy  as  per  l/Skl  19701/43  Gkdos.  see  War  Diary,  Part  C, 
Vol.  II  b. 

V.  On  the  instructions  of  Armed  Forces,  High  Command,  Opera- 
tions Staff,  Commanding  General,  Sough  has  commented  on  Naval 
Staff's  suggestion  in  regard  to  the  use  of  commando  troops  on 
the  North  African  coast  and  the  establishment  of  a  "Brigade 
Sued"  (see  War  Diary  14  Junn),  and  has  advised  Supreme  Com- 
mand, Armed  Forces,  High  Command,  Operations  Staff,  Aimed 
Forces  High  Command,  German  Intelligence  Service  in  Foreign 
Countries  and  High  Command,  Navy,  Naval  Staff  of  his  views. 

In  the  opinion  of  Commanding  General,  South  the  present  combat 
duties  of  our  naval  and  air  forces  do  not  permit  of  frequent 
and  extensive  operations  for  the  transport  of  commando  units. 
It  is  therefore  impossible  to  create  diversions  on  the  de- 
sired scale c 

Commanding  General,  South  will,  nevertheless,  try  to  exploit 
the  few  available  possibilities  for  isolated  operations  and 
again  requests  that  he  be  assigned  units  of  the  Brandenburg 
Division  suitable  for  this  purpose.  It  is  particularly  de- 
sirable that  the  broups  concerned  should  already  have  had 
some  parachute  training  and  should  also  have  been  trained  for 


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CONFIDENTIAL 
12  Jul.,  1943 

sabotage  missions,,   The  unit  of  the  Brandenburg  Division  no-w- 
in Sardinia  is  fully  engaged  on  special  missions;  none  of 
these  forces  could  be  withdrawn  without  detriment  to  these 
operations,, 

Naval  Staff  concludes  from  this  that  Commanding  General, 
did  not  fully  comprehend  the  import  of  Naval  Staff's 
-  original  suggestion,   Furthermore,  as  the  Chiefs  of 
Staff  of  the  Army  and  the  Air  Force  were  strongly  in 
favor  of  the  "Brigade  Sued",  on  the  occasion  of  the 
visit  of  Chief  of  Staff,  Naval  Staff,  it  would  be  most 
regrettable  if  the  unfavorable  views  of  Commanding  General 
south  )   should  lead  to  rejection  of  the  plan  by  the 
Armed  Forces,  High  Command,  Operations  staff. 

Naval  Staff  therefore  hastened  to  submit  to  Armed  Forces  High 
Command,  Operations  Staff  its  own  comments  on  the  statement 
by  Commanding  General  South  and,  after  explaining  that  the 
latter' s  objections  are  apoarently  based  solely  on  the  dif- 
ficulty of  execution  arising  from  the  present  war  situation, 
continued  as  follows: 

"These  objections,  however,  may  be  countered  by  the  argument 
that  an  apparent  reduction  of  combat  activities  may  produce  effects 
in  other  places  which  will  ultimately  influence  the  compara- 
tive strengths  more  favorably  than  the  direct  action  of  the 
air  and  naval  forces  which,  in  the  present  war  situation,  is 
largely  neutralized  by  the  enemy's  defenses,, 

Even,  if  the  performance  of  the  action  is  regarded  as  being 
entirely  dependent  on  the  possibility  of  using  our  naval  and 
air  forces  for  the  transport  of  the  commando  troops,  there 
may  be  periods  in  which  our  forces  will  not  be  so  heavily 
involved  so  that  the  planned  operations  may  be  possible  in 
the  future*.   But  the  establishment  of  a  suitable  organiza-  - 
tion  and  the  assembling  and  training  of  a  troop  takes  time, 
and  might  be  impossible  to  accomplish  quickly  enough  at  later 
date  when  a  favorable  opportunity  might  perhaps  arise. 

The  present  somewhat  uncertain  situation  in  the  Mediterranean 
makes  it  particularly  necessary  to  watch  for  all  possible 
changes  and  to  be  prepared,  for  any  future  operation  which  may 
offer  any  chance  of  success, 

Therefore,  having  examined  the  statement  of  Commanding  General, 
South,  Naval  Staff  does  not  consider  that  the  possibility  of 
operations  behind  the  enemy  front  in  Africa  has  been  disproved, 
and  repeats  herewith  its  suggestion© 


-153-  CONFIDENTIAL 


CONFIDENTLY 
12  Jul,  1943 

It  should,  however,  be  pointed  out  that  occasional,  snail- 
scale  sabotage  operations,  under  camouflage,  as  planned  by 
Commanding  General,,  South,  will  hardly  have  the  effect  of 
compelling  the  enemy  to  employ  more  forces  in  protection  and 
defense.  Such  isolated  actions  would  have  no  connection  with 
the  operational  plan  on  which  Naval  Staff's  suggestion  is 
based* 

VI „   A  report  dated  18  Jun9  on  the  special  task  of  Chief, 
Hydrographic  and  Meteorological  Division,  Navigation  Branch 
for  "Holzaugc"  as  per  OKM  Ski  H  1260/43  Gkdos.  is  attached  to 
War  Diary,  Part  B,  Vol.  V.  On  the  basis  of  this  report,  Chief 
Hydrographic  and  Meteorological  Division  decided  on  12  Junc 
(Jul.?)  that  the  "Holzauge"  station  should  be  disbanded  for 
the  time  being  without  replacement  and  that  the  remaining  crew 
should  be  picked  up  by  a  Do  26  plane  after  destroying  the  ship 
and  the  equipment.   This  has  meanwhile  been  done  by  a  sub- 
marine, 

VII,  Naval  Staff,  Naval  Intelligence  Division  has  issued  a 
map  survey  of  the  coastal  convoys  detected  in  the  main  traf- 
fic centers  of  the  waters  around  England  during  the  month  of  ■ 
.  Jun.  1943*  For  copy  as  per  l/Skl  21110/43  geh.  see  Mar  Diary, 
Part  D,"  "Convoy  traffic  in  English  Waters."  Due  to  lack  of 
adequate  information  as  to  numbers,  it  is  impossible  to  ob- 
tain a  clear  picture  of  the  strength  of  this  convoy  traffic 
during  the  period  covered  by  the  report.   The  rhythn  of  the 
traffic  has  not  changed  as  compared  with  our  previous  in- 
formation. The  apparent  increase  in  traffic  between  the  Thames 
and  Portsmouth  is  worth  noting« 

Examination  of  the  zone  limits  for  aerial  mine  operations  along 
the  coasts  of  England  in  connection  with  the  planned  large-scale 
use  of  mines  with  new  firing  devices,  showed  that: 

a0    Because  of  our  own  mine  fields  and  the  radar  lo- 
cation and  superior  defenses  of  the  enemy,  the  narrower  Chan- 
nel areas  can  no  longer  be  used  by  our  PT  boats.  Therefore 
the  sea  areas  between  a  line  from  3am.e-.-f.te  southeastwards  to 
51°12'N,  1°39 IE  and  a  line  along  the  longitude  of  Brighton  are 
released  by  the  Navy  for  unrestricted  aerial  mine  operations 
by  the  German  ^ir  Force* 

b.    North  of  the  Humber  mouth,  the  convoy  route  can 
be  reached  by  PT  boats  up  to  the  latitude  of  Flamborough  Head, 
It  therefore  seems  advisable  to  release  these  waters  on  both 
sides  of  the  convoy  route  for  PT  boat  operations  and  to  revise 


-154-  CONFIDENTLY 


CONFIDENTIAL 
12  Jul.  1943 

the  previously  arranged  limits. 

Naval  Staff  has  submitted  a  corresponding  proposal  to  Com- 
mander in  Chief ,  Air  Force,  Operations  Staff  requesting  ap- 
proval and.  the  amendment  or  amplification  of  the  basic  order 
of  Commander  in  Chief,  Air  Force,  Operations  Staff  of  30  Jun. 
1942  with  maps.   (See  War  Diary  13  Jun.  1942).  At  the  same 
time  Naval  Staff  stated  that  of  the  new  firing  devices,  only 
the  DM  1  gear  can  be  released  for  Air  Force  use  in  the  "yellow  v 
areas*  Use  in  the  "yellow"  areas  of  the  new  all-acoustic  or 
combined-acoustic  devices  is  prohibited  because  of  the  danger 
to  our  PT  boats  operating  in  those  waters. 

Situation  on  12  Julq  1943 

I„    War  in  Foreign  Waters: 

1.  Enemy  Situation: 
Nothing  to  report. 

2,  Own  Situation: 

Naval  Staff  has  informed  Ship  "28"  by  radiogram 
2251,  that,  according  to  information  from  our  Naval  Attache, 
Tokyo,  two  Japanese  submarines  are  operating  against  merchant 
shipping  north  of  20°S  and  west  of  90°E. 

II.   Situation  West  Area: 

1,    Enemy  Situation: 

Thirty-nine  planes  were  detected  over  the  Bay  of 
Biscay*  A  British  ship  in  the  operational  area  near  Cape 
Ortegal  reported  eight  of  our  planes  flying  west  in  BF  7187 
at  1540  and  two  contact  planes  near  a  convoy  in  BF  7184  at 
I64O,  From  2005  to  2050,  reports  from  British  ships  on  .an 
adr  attack  on  the  "Faith"  convoy  were  interceptede 

One  British  ship  was  located  at  0612  in  AL  9760,  one  at  0730 
in  the  area  between  51°45'  to  52°19  north  and  22°  to  24°00I 
west,  one  at  1202  in  BF  7730  and  one  at  2006  in  BF  7350o 

Reconnaissance  planes  of  Air  Commander,  Atlantic  Coast  re- 
ported at  0710,  4  destroyers  in  CG  2221  on  a  course  320°,  at 
0750,  1  cruiser,  1  destroyer,  1  ship  of  unspecified  tonnage 
on  a  northerly  course,  at  high  speed,  in  BF  7858;  at  1540,  1 
destroyer,  4  patrol  boats  on  a  northerly  course  in  BF  7519 
(uncertain);  at  1825,  a  patrol  vessel  sailing  south  in  CG  4249; 
and  at  1925,  1  merchantman  and  1  destroyer  with  a  plane  also  on 
course  180°  in  CG  4752  c 

-155-  'CONFIDENT!,. t 


:.:;rz:r.  "Z.-.1 
12  Jul.  1943 

The  Britif.'.    -~iralty  has   announced  I     b  in 

of    z:-_~ tany    on  1£    -ul.,    out   of   the 
:    rce      :   3   torpedc    boats    ititb   ?7  boat    :5::rt,l  t  io  boat 

and  1  rl   boat   were  probably   ~_r_-:,     «.ll  AUie  ips  were 

sal  I  be   have    returned  to  port.      Casualties  were  light , 

2.  -~t.   -■i~--Liti:r.: 

:  L    sred   off    E&arritSj  rff 

Gironde  and  one    off   Brest.     Tb  roads   of 

La  Pallicv  l  closed   because  of  suspect       gi  -    ines, 

Hine-laying  by  pla  serve z  at   the    northern    and     f    He 

de   2roiXa 

Destr        .  s  Z  "32%  Z"24"    and  I  "37"   of    -:-.:.  Z-stroyer  Flotilla 

left  i-  SVE,  the      .-...?.,    and  t                 joat 

T  "19"  left    for  Le  firing  practice   by  ■" 

.  "    -.  _  alear~-a  t.  .LrJjr.z    ::.:    rutsia:    th-: 
200  n  li.           .r  Steppe  point  is  planned  for  13  and  11+  Julc 

3cept     burin*   t  cercisej    the    ships  will  st            Z   i'  :;•.. 

tea ■  -      th  -  ■  -  3t# 

Id  -        -      tc    the   views   i    ported   ~y  Ccaaandir.-  .1  1 

Group  '.."est   on  tb  se    af  inccning  outgoaj 

rat s  again  oti—si        rine  forces  in  th 

Bay  :; :   i_  .      see   Har  Diary  5    and  10  Jul.),  Naval  Staff   baa 

forwarded  *  allowing  views   and  instn actions   tc   the   Zr:zz: 

1.         Regular  :r  or  tor]  oat    es- 

rt  for  the  sut        ines    is   far  is   ~.5~    or  6"     .     5   provide   the 
requir-a  security  -  =   this  nel         will  not   furnish  protection 
in  tfa         in  laager  area.     3d  the    otto  .   .,   the       I        -ly 

iifficult  situation  in  -     jard  to  fuel  oil  excludes   t  s- 

sibility     f    my  great   i         Lat     increase   in  tfa       LI   allotments 

-   already  ina  for  regul  -  rations  by  tl 

lestr        .  ■    tnd  torpor   boats    available   in  Nest   itreaa     li       di 

the  difficult!    ;      I     iss    mblar.r   ~r.      :     ~    :    _:  .      : 

ainredj    aan  hardly  be  solv;-:.  unless  th     fore   i    of  Cazr.zr.iz.r-z 
::  al .    I  rt  ai       sonsic      ably  reinf :  I  : .     .  .    how— 

sannot  t  I      resent«     D        ir  thi      t  in  .-.tlantic 

berths  j    and  the     necy  -  mater  action  tc  -  : 

n  Lnt  1    :  ti     w  or  t    rj  -  t  es- 

p  tc   100  riles  ad  tfa        tnV  r  f    int  is   t  e    ruled 

:u* ,     Z.sz:  borj  __  fore 

ly  t  ae  tc   subraarir.  as   ai  rt   in    r  .1 

^.      .        plan  1  uti-  Lircraft  submarines  between  abaut 


-156-  .:3_ i:::i-^ 


CONFIDENTIAL 
12  Jul.  1943 

8°  -  12°  is  approved.   Otherwise,  seme  protection  for  the  sub- 
marines can,  as  heretofore,  be  provided  only  by  means  of  in- 
creased activity  by  our  air  forces.  Commander  in  Chief,  Air 
Force,  Operations  Staff  has  again  promised  to  investigate  the 
status  of  air  strength  on  the  Atlantic  CoastQ 

2,    Naval  Staff  concurs  with  the  Groups' 
views  in  regard  to  the  use  of  destroyers  and/or  torpedo  boats 
against  enemy  submarine  chasers ,  The  steps  already  underway 
in  regard  to  air  reconnaissance  to  locate  the  enemy  anti-sub- 
marine forces  are  approved.  Favorable  opportunities  for  using 
destroyers  or  torpedo  boats  already  at  sea  against  enemy  sub- 
marine chasers  are  to  be  exploited e 

For  copy  of  teletype  l/Skl  I  op  19585/43  Gkdos,  see  War  Diary, 
Part  C,  Vol.  II  ba 

Channel  Coast: 

Patrol  positions  were  not  taken  up  because  of  the 
bad  weather,  Only  Channel  Island  convoys  were  runnings 

III„  North  Sea,  Norway,  Northern  Waters; 

North  Sea: 

At  0410,  minesweeper  M  "203"  struck  a  mine  in  AN  8581 
and  her' bow  was  blown  off*  She  is  being  towed  to  Fjmuidens 
At  1935>  two  British  fighters  made  a  low-level  strafing  at- 
tack on  the  tow  of  Ymuiden,  Minesweepers  H  "203"  and  M  "204" 
suffered  casualties. 

Two  ELM/J  mines  were  cleared  north  of  Terschelling,  No  other 
events  of  importance  were  reported, 

Norway,  Northern  Waters: 

1»    Enemy  Situation: 

Eighteen  planes  were  detected  over  the  North  Sea 
and  no  enemy  aircraft  in  the  area  of  the  Iceland  Squadrons c 
Air  reconnaissance  by  5th  Air  Force  produced  no  tactical  re- 
sults o 

2,    Own  Situation: 

A  submarine  hunt  by  two  BV  138  planes  in  the  north- 
ern entrance  to  Petsamo  fjord  produced  no  re  suits 0     according 
to  a  report  from  the  Air  Force  General  Staff,  one  of  our  con- 
voys was  attacked  by  25  enemy  planes  near  Vardoe  from  0046  - 
O125o   Seven  planes  were  shot  down  by  the  alerted  fighter  pro- 
tection,, 

-157-  CONFIDENTIAL 


CONFIDENTIAL 
12  Jul.  1943 

Mine  barrage  NW  41  -  43  'was "laid  according  to  plan  by  mine- 
layer SKitGERAi-K  and  one  naval  landing  craft.  For  barrage 
report  see  teletype  0120 » 

Forty-five  ships  were  escorted  to  the  north  and  35  ships  to 
the  south.  Eleven  ships  in  the  Arctic  Coast  area  and  7  ships 
in  the  North  Coast  area  had  to  discontinue  or  delay  their 
voyage  due  to  lack  of  escort* 

The  battle  group  reports  that,  during  exercises  it  was  found 
that  the  maximum  speed  of  the  TIRPITZ  on  7  Jul.  was  three 
knots  under  tht>  result  obtained  by  New  Construction  Trials 
Command.  Reason:  Increased  draft,  foul  bottom  and  minor 
engine  defects.  For  details,  see  teleprint  2100, 

These  consequences  of  prolonged  docking  are  probably 
unavoidable, 

IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

1,  Enemy  Situation: 

In  the  afternoon,  very  strong  air  activity  was 
observed  over  Kronstadt  Bay,  iU. together  31  patrol  boats 
and  PT  boats  and  one  submarine  were  observed  at  Lavansari, 
A  'convoy  of  6  patrol  boats,  1  PT  boat,  4  tugs,  and  6  barges 
entered  the  harbor  from  the  cast.  At  1950,  6  planes  attacked 
our  minesweepers  in  Narva  Bay, 

2,  Own  Situation: 

Seventeen  vessels  and  minesweeping  planes  made 
route  checks  in  the  area  of  Commanding  Admiral,  Defenses  Baltic* 

Admiral,  Denmark  has  reported  on  Danish  measures  against  fur- 
ther attempts  to  desert  to  Sweden  which  he  regards  as  adequate 
and  satisfactory.  For  copy  of  the  report,  see  teletype  1959 » 

Minesweeping  in  the  submarine  training  area  off  Memel  and  off 
the  Bay  of  Ahrensburg  was  completed  without  any  mines  being 
clear -d, 

German  light  planes  bombed  the  landing  stage  at  Lavnsari  during 
the  day. 

Transport  and  escort  traffic  throughout  the  Baltic  Sea  area 
was  carried  out  without  incident.  The  cruiser  ^.DMIR^L  SCHEER 
was  escorted  out  on  her  way  from  Swinemu^nde  to  the  east. 


-158-  CONFIDENTIAL 


CONFIDENTIAL 
12  Julo  1943 

V,  Submarine  Warfare; 

1,  Enemy  Situation: 
Nothing  to  r oporto 

2.  Own  Situation: 

Anti-aircraft  submarine  U  "441"  had  a  heavy  en- 
gagement with  three  enemy  planes  in  BF  4894  and  sustained 
casualties  by  strafing.  The  submarine  turned  back  to  port 
because  the  captain  was  wounded.  No  other  reports  have  been 
receivedc 

VI.  Aerial  Warfare: 

British  Isles  and  Vicinity; 

During  the  day,  enemy  planes  made  strafing  attacks  on 
traffic  installations  in  West  Area,   Several  locomotives  were 
damaged,,  One  enemy  plane  was  shot  down  by  anti-aircraft  artil- 
lery in  the  Abbeville  areae 

For  reconnaissance  results  of  Air  Commander,  Atlantic  see 
Enemy  Situation,  West  ^rea0 

For  details  of  the  attack  on  the  convoy  in  the  St.  Vincent 
area  on  11  Jul0,  see  "Daily  Situation"  ard  teletype  1420, 
Two  enemy  planes  were  shot  down  by  Ju  88  planes  400  -  500 
miles  west  of  Bordeaux,  The  total  result  reported  was  one 
passenger  ship  of  18  -  20,000  BRT  probably  sunk  and  one  pas- 
senger ship  of  15^000  BRT  heavily  damaged.  We  suffered  no 
losses. 

During  the  night  of  12  Jul.,,  strong  enemy  air  formations  were 
reported  flying  through  North  Italy*  The  main  target  of  at- 
tack was  Turin*,  One  plane  was  shot  down  over  Milan.  Off  the 
northern  coast  of  the  Bay  of  Biscay,  one  plane  was  shot  down 
near  St.  Pol, 

Last  night,  32  of  our  bombers  attacked  Grimsby,  nine  fighter- 
bombers  attacked  London  and  four  fighter  bombers  attacked 

Ramsgate, 

» 

Mediterranean  Theater : 

In  Sicily,  German  and  Italian  bomber  formations  kept  up 

-159-  CONFIDENTIAL 


CONFIDENTIAL 
12  Jul,  1943 

a  continuous  attack  in  cooperation  with  the  land  troops  and 
especially  in  support  of  the  "Hermann  Goering"  Tank  Division, 
Heavy  bomber  formations  and  torpedo  planes  (the  report  does 
not  specify  whether  they  were  German  or  Italian)  made  several 
attacks  on  ships  and  landing  facilities  with  good  results. 

Light  and  heavy  enemy  bomber  formations  repeatedly  attacked 
our  troops,  as  well  as  several  airfields,  in  Sicily  with  in- 
creasing violence,  causing  considerable  losses  to  our  troops 
in  personnel  and  equipment.  Runways  at  some  of  the  airfields 
were  heavily  damaged.   Another  attack  was  made  by  extremely 
strong  forces  on  Messina  and  Reggie,  It  is  impossible  to  land 
at  the  airfield.  Low  level  air  attacks  were  directed  mainly 
against  supply  traffic  in  the  Canicatti  area.  One  Liberator 
and  12  fighters  were  shot  down0  For  further  details,  see 
Daily  Situation.  During  our  bombing  operations  in  the  night 
of  11  Jul.,  one  tanker  was  sunk  and  hits  were  scored  on  16 
merchantmor.  and  transports  as  well  as  on  c  no  anti-aircraft 
cruiser  in  the  Gela  area,  two  transports  and  one  ammunition 
steamer  were  sunk,  eleven  freighters  and  transports  were  dam- 
aged, some  of  them  heavily  and  several  landing  boats  were  hit 
it  the  Avola  -  Cape  Passero  area* 

Eastern  Front: 

On  U  Jul.,  70  enemy  planes  were  shot  down  on  the  Army 
front.  No  special  reports  have  been  received  from  4th  Air 
Force.  For  the  successful  defense  by  5th  Air  Force  in  the 
escort  service  in  the  Vardoe  area,  see  Situation  Norway. 

711 »  "oarfaro  in  the  Mediterranean  and  Black  Sea: 

1,    Enemy  landing  in  Sicily: 

In  regard  to  the  position  on  land,  Commanding 
General,  South  reports  that,  during  the  morning,  the  situa- 
tion had  become  precarious  due  to  attacks  launched  from  the 
main  landing  points  by  strong  enemy  forces,  but  the  attacks 
were  repulsed  and  German  forces  brought  up  to  patrol  the  gaps 
between  the  various  German  battle  groups,  and  by  evening,  the 
situation  could  again  be  regarded  as  stablized„  Enemy  pres- 
sure is  at  present  strongest  round  Canicatti. 

On  the  afternoon  of  11  Jul.,  the  enemy  made  new  landings  at 
Lie  its  and  to  the  west  of  that  porte  In  the  coastal  aroa  be- 
twoen  Licata  and  Augusta,  a  total  of  40  LST  and  109  LCI  and 
LCT  as  well  as  74  freighters  totalling  about  500,000  3RT  were 


-160-  CCNFIDENTXiL 


CONFIDENTIAL 
12  Jul*  1943 

counted.  Six  LST  and  30  freighters  for  about  150,000  BRT 
were  reported  approaching  the  southeast  coant  of  Sicily „ 
'  Thus  about  half  of  the  LST  and  almost  two -thirds 'of  the -LCI 
and  LCT  used  in  the  landing  have  already  been  withdrawn, 
whether  for  reloading  or  for  other  operations  remains  to  be 
seen.  No  great  withdrawal  of  freighter  tonnage  from  the  land- 
ing places  is  yet  noticeable 0 

From  0200,  Trapani  was  bombarded  by  heavy  units  16  kms  out 
to  sea.  Launching  of  landing  boats  is  also  said  to  have  been 
observed o  But  no  landings  were  made  in  the  Trapani  area  and 
the  formation  departed.   A  battleship  and  a  cruiser  bombarded 
'  Siculiana,  6  miles  northwest  of  Empedocle,  at  D18  and  Empedocle 
'itself  at  1040,  In  the  afternoon,  the  coast  between  Augusta 
and  Catania  was  heavily  bombarded  from  the  sea  by  seven  heavy 
units  including  a  battleship,,  According  to  Italian  reports  ,t 
enemy  assault  boats  landed  at  Augusta  and  south  of  Augusta  at 
1435.  At  1500,  enemy  torpedo  boats  were  sighted  in  the  harbor 
of  iiugusta.  According  to  further  Italian  reports,  there  were 
6  cruisers,  10  miles  north-northeast  of  Catania  at  1#40, 

At  0720,  our  air  reconnaissance  reported  4  destroyers  or  tor- 
pedo boats  on  easterly  courses  off  the  north  coast  of  the 
island,  20  miles  northwest  of  Palermo „ 

It  has  been  confirmed  by  photographic  reconnaissance  that 
Malta  is  being  used  as  a  supply  base.  On  the  afternoon  of 
11  Jule,  there  were  2  destroyers,  9  submarines,  30  PT  boats 
including  15  motor  gun  boats  and  about  30,000  BRT  of  merchant 
shipping  tonnage  at  La  Valet ta. 

In  the  night  of  10  Jul.,  an  Italian  submarine  sank  an  enemy 
cruiser  off  Syracuse  by  four  torpedoes*   7th  PT  Boat  Flotilla 
left  Cagliari  at  2030  on  11  Julg  for  operations  against  the 
enemy  formation  reported  off  Trapani,  but  was  unable  to  locate 
it0  Only  a  submerging  submarine  was  sighted  25  miles  north 
of  Trapani,  The  flotilla  put  in  to  Mondello,  north  of  Palermo, 
during  the  morning  of  12  Jul0  During  the  day,  3  boats  of  3rd 
PT  Boat  Flotilla  and  4  boats  of  7th  PT  Boat  Flotilla  moved  to 
Messina,  From  there,  they  are  to  operate  off  the  oast  coast 
of  the  island  during  the  night  of  12  Jul„ 

German  Naval  Command,.  Italy  reports«.that  Salerno  has  been 
assigned  as  the  new  base  for  3**d  PT  Boat  Flotilla  and  Reggio 
fdr  7th  PT  Boat  Flotilla 0  Permission  will  bo   requested  of 
*  the  Italian  Admiralty  for  the  flotillas  to  operate  out  of 
Messina,  Crotone,  Trapani  or  Tarant.o,  as  the  situation  demands 0 


-I6I-  CONFIDENTLY 


CONF  IDENTIAL 
12  Jul.  1943 

While  en  route  to  her  operational  area  in  CN  26,  submarine  U 
"561"  was  engaged  by  3  ensmy  PT  boats  off  Messina  and  was 
sunk  b r   a  torpedo*  Submarine  U  "375"  will  occupy  CN  31  and 
U  "453"  will  go  to  CN  34, 

Naval  Staff  has  issued  the  following  directive  to  German  Naval 
Command ,  Italy,  and  Commander  Submarines,  Italy,  with  copy  to' 
Aimed  Forces,  High  Command,  Operations  Staff  and  High  Command, 
Array,  General  Staff  of  the  Army: 

1.  Evaluation  of  photographic  reconnaissance 
on  the  afternoon  of  10  Jul.  reveals  that  of  the  total  trans- 
port tonnage  in  the  Mediterranean,  the  following  amount  is 
being  used  in  the  landing  operation  in  Sicily:  LST,  about  95% f 
LCT  and  LCI,  about  70%,   Transports,  about  205&,  Freighters,  a- 
bout  50$,  Therefore  it  may  now  be  certainly  assumed  that,  for 
the  time  being,  the  enemy  has  all  his  forces  concentrated  in 
the  Sicilian  operation  and  that  further  landings  at  other 
places  need  not  be  expected  in  the  near  future. 

2.  As  the  enemy  has  succeeded  in  establishing 
bridgeheads  in  Sicily,  every  effort  must  now  be  made  to  pre- 
vent their  reinforcement.  Accordingly,  the  PT  boats  will 
operate  mainly  out  of  the  Messina  Straits  off  the  south- 
east coast  of  Sicily,  Operational  plans  for  German  and  Italian 
submarines  already  conform  with  this  arrangement  and  are  ap- 
proved, 

3.  Besides  this,  it  is  extremely  important 
that  our  ovn  supplies  should  be  safeguarded  to  the  greatest 
possible  extent.  Defense  of  the  Straits  of  Messina  is  thus 
essential,  and  maximum  employment  of  PT  boats  for  this  purpose* 

In  regard  to  Naval  Staff '  s  directive  of  11  Jul,  transferring 
the  whole  of  the  12th  Motor  Minesweeper  Flotilla  to  the  Aegean 
German  Naval  Command,  Italy  reports: 

"The  outcome  of  the  battle  of  Sicily  will  probably  decide 
Italy's  future  attitude.  The  German  Army  and  Air  Force  are 
bringing  up  more  forces  into  action.  Supply  requirements  are 
increasing.   The  enemy  Air  Force  is  attacking  powerfully. 
There  is  a  chronio  lack  of  escort  vessels.  The  withdrawal  of 
the  first  group  of  motor  minesweepers  has  weakened  the  de- 
fense of  Sicily  as  the  Gela  barrages  could  not  be  laid.  Fur- 
ther withdrawals  of  beats  which  are  specially  suited  for  es- 
cort service  would,  at  the  present  stage,  paLpAh^P  weaken  our 
protection  and  seriously  affect  the  reputation  of  the  Navy," 


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CONFIDENTIAL 
12  July  1943 

Naval  Staff  has  therefore  decided  as  follows: 

"After  evaluation  of  reconnaissance  results  up  to  the  evening 
of  10  Jul,,  Naval  Staff  is  now  convinced  that  at  this  time 
the  enemy  is  concentrating  all  forces  on  the  Sicilian  opera- 
tion and  that  therefore  a  landing  in  the  Greek  area  is  very 
unlikely  before  the  end  of  the  Sicilian  operations 0  Concern 
for  Greece  can  therefore  be  put  aside  in  faror  of  the  defense 
of  Sicily  which  is  now  without  doubt  our  main  task.  In 
cancellation  of  order  l/Skl  19633/43  Ckdos.,  Naval  Staff 
therefore  orders: 

The  7  boats  of  12th  Motor  Minesweeper  Flotilla  which 
have  not  yet  left  for  the  Aegean  will  remain  for  the 
time  being  at  the  disposal  of  German  Naval  Command, 
Italy," 

The  following  report  of  the  afternoon  of  11  Jul0,  forwarded 
by  Commanding  General,  South,  from  the  Commanding  Officer  of 
Brigade  Schmalz  is  regarded  with  the  utmost  concern: 

1Q    No  enemy  attack  has  been  made  on  Augusta  up 
to  now.  The  British  have  never  entered  Augusta e  Neverthe- 
less, the  Italian  garrison  has  blown  up  all  guns  and  ammuni- 
tion and  set  fire  to  a  big  fuel  dump  which  is  still  biursi&ijg 
on  the  afternoon  of  11  Jul,,  The  anti-aircraft  artillery  units 
at  Augusta  and  Priolo  have  fired  all  their  ammunition  into  the 
sea  and  blown  up  their  guns, 

20    On  the  afternoon  of  11  Jul0,  not  a  single 
Italian  soldier  was  still  under  any  kind  of  command  in  the 
area  of  Brigade  Schmalz ©  All  the  officers  had  already  left 
their  troops  during  the  morning  and  had  taken  themselves  off 
by  car  or  bicycle  to  Catania  and  beyondo  Italian  soldiers 
are  wandering  about  the  streets  and  the  countryside  on  their 
own  or  in  small  groups  of  up  to  five  men.  Many  have  thrown 
away  their  weapons  and  some  have  discarded  their  uniforms 
and  put  on  blue  overalls  c, 

It  is  earnestly  hoped  that  theae  are  only  isolated 
incidents.  But  if  such  disgraceful  events  are  possible, 
it  is  to  be  feared  that  the  Italian  defense  force  in 
Sicily  falls  below  expectations  in  every  way,-, 

20    Other  reports  on  the  enemy  situation  in  the 
Mediterranean : 


-1.63-  CONFIDENTIAL 


12  Jul,  1943 

.•vt  0230,  a  convey  of  6  freighters  left  Gibraltar 
for  an  unknown  destination.  At  1950,  4  U.  S.  freighters  with 
3  U.  So  submarine  chasers  arrived  from  the  Atlantic. 

-it  0900,  our  air  reconnaissance  reported  30  ships  sailing 

utheast,  20  miles  north  of  Bizerte,   Two  battleships  were 
seen  at  Bone  in  the  evening,  a  convey  of  6  freighters  on  an 
easterly  course,  southeast  of  Cape  Spartivento,  fired  a  valid 
German  recognition  signal  when  our  plane  flew  over  it. 

In  the  afternoon  and  evening  of  11  Jul,.,  submarines  were  de- 
tected near  Cape  Vaticanc  and  20  miles  south  of  Toulon, 

Up  to  midnight,  radio  intelligence  continuously  intercepted 
air  reconnaissance  reports  frcn  the  Tyrrhenian  Sea  and  from 
the  area  west  of  Corsica.  Several  air  attacks  were  ordered 
consequent  to  many  sighting  reports  on  our  convoys c  . 

In- the  Eastern  Mediterranean,  uninterrupted  reconnaissance  by 
our  planes  from  Bengasi  to  Port  Said  detected  only  one  convoy 
of  3  small  ships  east  of  Sidi  Barani, 

according  to  an  intelligence  report  received  via  Naval  In- 
formation Office,  Istanbul,  transport  vessels  have  been  as- 

oling  at  Port  Said  and  Alexandria  since  5  Jul,  British 
circles  anticipate  an  attack  on  the  Dodecanese  or  Crete0 

According  to  .an  Intelligence  Report' from  Mellila  on  11  Jul0, 
the  3ritish  are  planning  a  landing  in  southeast  France  for 
which  100,000  troops  are  being  held  in  readiness c  It  is  said 
that  preparations  are  being  made  with  France  by  agents,  and 
that  arms  are  being  sent  by  submarines, 

3,    Other  reports  on  our  own  situation  in  the  Mediter- 
ranean: 

The  anti-aircraft  corvette  SG  "13"  which  was  damaged 
by  aerial  torpedo  south  of  Naples  on  11  Jul,,  has  had  to  be 
beached. 

Mine  layers  BiiAKDENBUflG  and  P0MMSRN  have  moved  from  Kaddalena 
to  Toulon* 

Submarine  U  "565"  is  returning  slowly  to  Toulon  from  the 
3 t^rn  Mediterranean, 


-I64-  CONFIDENTIAL 


CONFIDENTIAL 
12  Julk/943Sea  Transport  Situation; 

No  reports  have  been  received, 

5 o         Area  of  Naval  Group,  South : 

Aegean : 

The  DRACHE  and  the  BULGARIA,  together  with  4 
motor  minesweepers,  left  Piraeus  for  Patras  for  mine  opera- 
tions 0  From  2000  to  2030  on  11  Jule. ,  an  enemy  submarine 
bombarded  two  villages  in  the  Gulf  of  Salonika  and  sank  12 
auxiliary  sailing  vessels  and  one  steam-  tug  *  A  torpedo 
(which  ran  ashore)  was  recovered.  Two  naval  landing  craft 
and  planes  were  sent  out  on  a  submarine  hunt0  Group  South 
has  called  the  attention  of  Commanding  General,  Southeast  to 
the  possibility  of  using  this  incident  for  propaganda  purposes „ 

Group  South  has  advised  Naval  Staff,  for  information,  of  itvS 
request  to  Commanding  General,  Armed  Forces,  Rilkans;  Group 
West;  Naval  Command,  North  and  High  Command,  Navy,  General 
Naval  Administration  Bureau  that  the  transportation  of  the 
batteries  dispatched  to  Salonika  be  expedited  in  every  possible 
way  as  they  arc  urgently  required  in  view  of  the  development 
of  the  situation,,  For  copy,  see  teletype  1505, 

Black  Sea: 

Enemy  Situation: 

On  11  Jul,,   three   Prussian  planes  were  sighted  in 
the  area  off   Constant za„ 

Own  Situation: 

Due  to  bad  weather,   our  naval  forces  were  not  in 
operation*     Patrol  positions  were  taken  up  according  to  schedule*, 
Seven  mines  were  cleared  during  check  sweeps  south  of  the   Taman 
coaste     Except  to   Temrjuk,   no  supply  traffic  was  carried  out 
due  to  weather  conditions* 

Admiral,   Black  Sea  reports  that  the   total  supplies  transported 
from  1  -  10  Jul,,   1943  amounted  to  36,266  tons,   of  which  21,019 
were  carried  by  the  Navy, 

Comm mder  in  Chief,   Air  Force,   Operations  Staff  has  advised 
Naval  Staff,   for  information,    of  the  directive  to  4th  Air 
Force  that  the  3rd  Squadron  of  the  1st  Minesweeper  Group  be 
reinforced  by  three  more  minesweeping  planes   in  excess  of  es- 
tablishment,  as  it  is  necessary  to   increase  the   anti-aerial 
mine  patrols  in  the  Danube  estuary  and  the  western  coastal  areas 
of  the  Black  sea0 

VIII »  Situation  in  East  Asia: 

Nothing  to   report* 

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CONFIDENTIAL 
13  Jul,  1943 

Items  of  Political  Importance : 

No  special  reports  have  been  received. 

Conference  on  the  situation  with  Chief,  Naval  Staff : 

I,    A  discussion  was  held  on  the  attitude  of  the  Italian 
Navy  in  the  light  of  Admiral  Riccardi's  answer  forwarded  by 
Commanding  Admiral ^  German  Naval  Coranand,  Italy  (see  War 
Diary  12  Jul,),  The  reply  did  not  touch  on  Chief ,  Naval 
Staff's  suggestion  that  the  Italian  light  naval  forces  be 
used  for  night  operations  against  the  enemy  landing  forma- 
tions, Apparently  it  is  considered  that  the  destroyers  are 
indispensable  for  the  defense  of  the  big  battleships  and 
that,  like  the  latter,  they  must  therefore  be  preserved.   If 
the  general  policy  of  the  Italians  is  to  continue  undeviating- 
ly  along  the  lines  so  far  laid  down  by  the  Duce,  it  is  hard 
to  understand  how  there  can  be  any  restraint  in  regard  to 
the  use  of  their  fleet  at  this  decisive  moment,  or  how  con- 
siderations of  the  risk  of  facing  superior  enemy  strength 
can  boar  any  weighto 

In  regard  to  the  question  as  to  what  Germany  should  do  to 
gain  control  of  the  situation,  Chief  of  Staff,  Naval  Staff 
alluded  to  the  importance,  from  a  strictly  military  point  of 
view  of  a  diversion  on  the  Iberian  Peninsula ,  The  disadvant- 
ages to  ourselves  of  such  a  step  should  not  be  ignored*  It 
was  a  matter,  however,  of  vital  urgency  to  relieve  and  di- 
vide the  pressure  on  the  south  flank  of  our  European  position 
at  the  point  of  highest  tension.  The  defense  of  this  position 
both. in  Italy  and  in  the  Balkans  also  confronts  us  with  dif- 
ficult military  problems  so  long  as  the  extraordinary  tension 
of  the  Russian  flank  prevails.  The  first  essential  is  to  take 
quick  and  fundamental  decisions  calculated  to  avert  the  immi- 
nent danger  of  an  enemy  break-through  in  Italy.  Italian  de- 
fensive power  has,  unfortunately,  proved  to  be  even  weaker 
than  expected,  apparently  mainly  due  to  bad  leadership.  The 
question  is  whether  we  are  to  help  the  Italians  by  all  means 
still  possible  to  hold  their  country  against  the  enemy  and  if 
so  whether  we  are  in  a  position  to  bring  up  the  necessary 
German  troops  quickly  enough  'or  whether,  if  this  is  not 
possible,  we  should  attempt  to  improve  the  prospects  of  de- 
fense by  trying  to  make  German  leadership  effective  also  in 
the  Italian  forces  -  along  the  Linus  of  the  command  arrange- 
ments made  in  May  of  this  year  by  Chief,  Naval  Staff,  for 
the  supply  traffic  and  escort  service  to  Tunisia,  This  might, 
perhaps,  at  the  last  moment,  induce  the  more  willing  Italian 
officers  to  make  an  effort  such  as  to  avert  disaster,  which 

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CONFIDENTIAL 
13  Jul,  1943 

in  itself,  would  suffice  to  create  a  new  situation,, 

Naval  Staff,  Operations  Division  will  draft  a  proposal  along 
these  lines  to  be  submitted  by  Chief,  Naval  Staff  to  the 
Fuehrer. 

Fuehrer rs  directive  of  25  Jun„  1943*  on  operational  command 
in  Italy^  was  intended  to  ensure  that  German  influence  in 
the  conduct  of  the  war  in  the  Italian  theatre  should  keep 
pace  with  the  increased  amount  of  German  troops  sent,  with 
a  view  to  using  the  German  forces  to  the  best  advantage,, 
For  copy  as  per  l/Skl  19620/43  Gkdos.  see  War  Diary,  Part  C, 
Voio  XIV*.  The  directive  was  issued  at  a  time  when  the  Med- 
iterranean situation  had  not  yet  become  so  serious.   It  does 
not,  therefore j  take  into  account  Naval  Staff's  views,  as 
outlined  above,  in  regard  to  the  strongest  possible  injection 
of  German  influence  into  the  operational  command. 

Chief,  Naval  Staff,  Quartermaster  Division  reported  as  the 
result  of  an  investigation  of  the  Italian  Navy's  fuel  oil  sit- 
uation, stocks  on  1  Jul,  are  estimated  as  having  been  oO^OCO 
cubic  meters.  As  German  Naval  Command,  Italy  has  an  additional 
reserve  of  8,000  cubic  meters,  lack  of  action  by  the  Italian 
Fleet  could  not  be  attributed  to  lack  of  fuel. 

Chief,  Naval  Staff,  Quartermaster  Division  also  reported  that 
Radio  Intelligence  had  identified  a  special  enemy  air  forma- 
tion which  has  so  far  been  observed  only  once,  shortly  before 
the  attack  against  the  dams  in  western  Germany,,  All  offices 
concerned  have  been  informed. 

Third  Naval  Landing  Division  is  to  be  established  by  1  0cta 

In  a  highly  restricted  circle: 

III;,  Chief,  Naval  Staff,  Operations  Division,  Operations 
Branch:  Naval  Attach^,  Tokyo  reports: 

lc    The  Japanese  fuel  position  is  still  very  strained. 
The  increased  requirements  can  be  met  only  by  a  reduction  in 
quality,,  JCven  the  Japanese  submarines  have  for  a  long  time 
buen  using  oil  of  lower  grade  than  "Kirschbluete," 

The  Naval  Staff  has  advised  that  the  promising  Japanese  Fleet 
operation  that  had  been  planned  with  the  2ita  of  cutting  off 
sections  of  the  U,  S.  fleet  near.  Attu  has  had  to  be  cancelled 
because  of  the  fuel  shortage. 


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CONFIDENTIAL 
13  Jul.  1943 

2.    Total  Japanese  requirements  anount  to  9  million 
tons,  of  'which _,  4c 5  million  tons  are  needed  for  the  Navy  a- 
lone,  including  0.5  million  tons  of  aircraft  gasoline,, 
Heaviest  consumption  is  by  the  supply  fleet  for  the  Armya 

3e  Total  production  is  at  present  only  6r6  million 
tons  comprising  3»0  million  tons  at  Palembang  (Sumatra)  and 
Balikpapan  (south  Borneo)  plus  3«6  million  tons  brought  by 
tankers  to  be  refined  in  Japan.  By  the  middle  of  1944,  it 
is  planned  to  increase  production  up  to  10  million  tons  by 
building  300,000  tons  of  tanker  space  and  by  enlarging  the 
refineries  in  the  southo 

4»    VJhen  the  Army  and  Navy  air  programs,  vhich  pro- 
vide for  construction  of  25,000  plants  by  the;  end  of  1944, 
are  completed,  gasoline  consumption  will  go  up  to  about  2,5 
million  tonse 

5.    Production  in  northorn  Borneo  and  in  Burma  is 
so  far  insignificant, 

IV.   In  regard  tc  the  distribution  of  our  naval  forces  in 
the  Italian  area,  Chief,  Naval  Staff  reiterated  that  offensive 
operations  against  the  landing  forces  and  their  cover  and 
protection  of  our  supply  lines  to  the  island  will  remain  the 
chief  task  as  long  as  th^  fighting  in  this  area  lasts.  T>'.rith- 
drawal  of  the  units  in  the  u^gean  area  is  not  yet  necessary. 
However,  this  possibility,  vfoich  may  suddenly  arise,  must  be 
kept  continually  in  minde. 

Special  Items: 

I©    At  the  evening  situation  report  of  12  Jul,,  Admiral, 
Fuehrer  Headquarters  was  brieged  as  follows  in  regard  to 
the  use  of  the  new  mine-firing  devicos  in  the  Mediterranean: 

I©    Use  of  the  new  device  in  the  Sicilian  landing  area 
is  inadvisable  as  its  water  depth  limit  is  only  25  meters  (?) 
and  because 

1©    on  the  east  coast,  only  a  very  small  strip 
is  of  suitable  depth, 

2,    on  the  south  coast,  where  there  is  shallow 
coastal  water,  the  big  landing  vessels  move  only  at  very  low 
speed  or  are  moored,  so  that  the  pressure  box  or  acoustic 
firing  device  would  lose  much  of  its  ef  "ect0  Pressure  boxes 
are  unlikely  to  be  effective  against  landing  craft. 


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CONFIDENTIAL 
13  Jul,  1943 

3«    our  naval  forces  cannot  reach  the  waters  in 
question o 

4»    Use  by  the  air  Force  would  greatly  endanger 
security  as  the  shallow  coastal  waters  are  too  narrow  and 
there  would  be  a  risk  of  the  mines  falling  on  land  or  being 
recovered  from  the  water* 

XIa   In  the  jumping  off  areas  in  North  Africa  use  .of 
the  new  firing  devices  is  not  advocated  because 

1.    suitable  target  areas  with  the  required 
depth  of  water  are  to  be  found  only  in  the  immediate  vicinity 
of  ports  and  up  to  5  miles  seawards  from  La  Goulettec 


Force* , 


these  areas  can  be  reached  only  by  the  Air 


3«    in  view  of  the  strong  defense,  the  security 
threat  is  very  great  (planes  shot  down  over  land  or  recovery 
of  the  mines  by  divers  in  the  clear  water) 0 

IIIe  Use  of  the  firing  devices  off  ports  in  our  own 
zone  of  influence  as  protection  against  landings  is  dangerous , 
as  we  have  still  no  means  of  clearing  these  mines,  besides 
which  their  operational  possibilities  are  greatly  restricted 
because  of  the  steep  coasts , 

IVo   Summing  up:   The  Grand  Admiral  strongly  disadvised 
use  of  the  new  firing  devices  in  the  Mediterranean  since  their 
effectiveness  in  that  area  wo^.ld  be  very  limited  and  the  suc- 
cess of  their  large-scale  use  against  England  might  be  com- 
promised. Moreover,  it  would  involve  too  great  a  threat  to 
security,  with  the  resulting  rj.sk  that  the  new  weapon  might 
soon  be  turned  against  ourselves*   There  is  no  objection  to 
the  use  of  the  older  firing  devices,  including  the  A  105  by 
the  air  Force* 

According  to  information  from  Armed  Forces,  High  Command,  Opera- 
tions Staff,  Navy,,  the  Fuehrer  abandoned  the  plan  to  use  these 
mines  on  the  basis  of  this  reporto 

II,   On  10  Jul,,  Commander  in  Chief,  Navy  issued  an  order  for 
the  execution  of  the  1943  naval  construction  pprgram  and  ex- 
pressed the  hope  that  in  view  of  the  serious  situation,  all 
offices  concerned  in  the  new  arrangement  will  spare  no  effort 
in  the  fulfilment  of  their  duties©  In  cooperation  with  Aeich 
Minister  Speer,  the  Navy's  task  which  difficult  conditions 


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CONFIDENTIAL 
13  Juln  1943 

render  increasingly  heavy,  nust  be  accomplished,  also  in  the 
field  of  warship  construction,, 

For  Copy  of  the  order  as  per  l/Skl  19952/43  Gkdos.  see  War 
Diary,  Part  B,  Vol.  V. 

Ilia  As  part  of  the  progress  report  on  impro cements  in  weapons 
and  equipment  for  naval  warfare  ordered  by  Chief  of  Staff,  Naval 
Staff,  Chief,  Bureau  of  Naval  Armament,  Underwater  Obstacles 
Branch  has  compiled  a  survey  of  the  development  of  mining  and 
barrage  equipment  during  this  war  up  to  1  Jul.  1943*  For 
copy  of  l/Skl  19520/43  Gkdos o  see  War  Diary,  Part  C,  Vol*  VI. 

IV «,   Since  the  beginning  of  Jul,  1943>  the  Quartermaster 
Division  of  the  German  Navy  has  been  negotiating  with  the 
Royal  Italian  Navy  through  Naval  Attache^  Rome  on  the  delivery 
of  torpedoes,  reserve:  engines,  spare  parts  etc9  for  the  Italian 
PT  boats  taken  over  by  the  German  Navy  in  the  Black  Sea0   These 
negotiations  have. so  far  led  to  no  positive  results  because, 
for  example,  the  Italian  Navy  made  the  requested  torpedo 
supply  upon  a  corresponding  reduction  in  current  deliveries 
of  Italian  aerial  torpedoes  to  Germany e 

Naval  Staff  has  requested,  through  the  Italian  Liaison  Staff 
that  the  Italian  Admiralty  should  intervene  with  the  Italian 
naval  offices  concerned  in  favor  of  Naval  Staff's  demands. 
For  copy  of  the  relative  letter  l/Skl  I  m  19326/43  Gkdos.  see 
War  Diary,  Part  C,  Vol.  XIV  a„ 

V.    The  Japanese  have  expressed  special  concern  in  regard 
to  the  protection  of  the  FLIEDER ' s  berth  against  air  attack,, 
Investigation  at  Bordeaux  has  revealed  that  the  shelter  is 
only  102  meters  long  as  compared  with  the  boat's  length  of 
108  meters,  while  110  meters  had  been  originally  reckoned 
with  9 

'/.:'•'      . .  .  • 

Tokyo  has  expressed  the  hope  that,  if  the  shelter  is  not  ' 
long  enough ^  the  German  Navy  may  build  an  extension  to  ity 
which  would  be  worth  doing  as  the  FLIED.2R  x>rould  not  be  the 
last  boat  to  be  expected  from  Japanc 

ivs  i.t  is  planned  to  get  the  Japanese  to  participate  in  the 
transport  submarine  operations  it  is  desirable  to  dispel 
these  fears. 

Naval  Staff,  Operations  Division  has  asked  Naval  Staff, 
Quartermaster  Division,  Fleet  Branch,  Submarine  Section  for 
the  necessary  details. 


•170- .  confid^tl;l 


CONFIDENTIAL 


13  Jul.  1943 


For  copy  of  letter  l/Skl  I.  opa  2003/43  Gkclos.  Chefs „  see  War 
Diary,  Part  C,  Vol.  II  b, 

VI.  Naval  Command,  Baltic  has  submitted  a  detailed  situa- 
tion following  the  recent  tour  of  inspection  by  A  I  East  -  Ops 
Staff  -  to  the  Leningrad  area,  Gulf  of  Finland,  in  the  course 
of  which  thorough  discussions  and  exchange  of  views  were  held 
with  Commander,  Minesweepers,  Baltic,  Admiral,  Baltic  Countries 
Army  High  Command  18  and  1st  Air  Force  and  with  the  Finnish 
Naval  Staff  on  the  situation  and  the  conduct  of  the  war  in 

the  Gulf  of  Finland.  For  copy  as  per  l/Skl  IS48/43  C-kdos, 
Chefs,  see  War  Diary,  Part  C,  Vol,  III* 

Chief,  Naval  Staff  discussed  the  strategic  parts  of  the  re- 
port in  his  last  report  to  the  Fuehrer  so  that  revision  and' 
dissemination  to  Supreme  Command  Armed  Forces,  High  Command, 
Operations  Staff  and  General  Staff  of  the  Amy  is  superfluous e 

VII.  Naval  Staff,  Naval  Intelligence  Division  has  evaluated 
an  article  by  a  well-known  naval  expert  published  in  the  Daily 
Telegraph  on  1  May  1943  on  the  increasing  importance  of  the 
British  anall-warship  formations,,  For  copy  as  per  l/Skl 
20880/43  get,  see  War  Diary,  Part  D,  Volume  "Evaluation  of 
Information  on  Foreign  Navies* "  The  report  shows  the  method 
and  energy  with  which  the  British  are  adapting  themselves  to 
both  the  offensive  and  defensive  problems  raised  by  this 'war 
in  the  widespread  coastal  waters  from  orway  to  Quossant,  in 
the  Mediterranean,  in  West  Africa  and  in  East  Asia,, 

Situation  on  13  Jul,  1943: 

Ia    War  in  Foreign  Waters: 

1 .    Enemy  Situation : 

Nothing  to  report* 

2„    Own  Situation: 

Further  information  on  the  situation  in  the  South- 
west Pacific  was  forwarded  to  Ship  "28"  by  radiogram  0858  and 
all  ships  in  foreign  waters  were  informed  on  the.  movements  of 
enemy  steamers  by  radiogram  0923* 

Naval  Staff  has  informed  Naval  Attache,  Tokyo  that  the  arrival 
of  the  second  -iQUILA  boat  at  the  rendezvous  point  is  unpredict- 
able. Probably  like  the  AQUILA  V,  she  has  been  lost,  so  that 
the  iiQUILi'i.  VI  -  still  in  the  Atlantic  -  is  probably  travelling 
alone,  (see  telegram  1045)* 

-171-  CONFIDENTLY 


CONFIDENTIAL 
13  Jul,  1943 

No  reports  have  been  received  from  our  ships «, 

II.   Situation  West  Area: 

1»  .   Enemy  Situation: 

During  the  night  of  12  Jul3,  strong  air  activity- 
was  observed  along  the  entire  Atlantic  coast,  apparently  for 
nine  laying  operations.  The  shooting  down  of  one  plane  near 
St0  Pol  was  already  reported  on  12  Julo  At  2310,  a  suspicious 
rowing  boat  was  sighted  near  the  Pauillac  floating  dock*  It' 
succeeded  in  evading  our  careful  search,,  At  0949  on  13  Jul*, 
rtadio  Intelligence  detected  a  vessel,  probably  a  submarine, 
150  milos  west  of  La  Pallice*  This  was  later  confirmed  by  a 
salvo  of  six  torpedoes,  which  fortunately  missed  their  target 
fired  against  one  of  our  submarines  in  the  same  area,, 

Our  air  reconnaissance  reported,  at  0811,  5  vessels  including 
1  cruiser,  and  1  destroyer  on  varying  courses,  at  medium  speed, 
20  miles  west  of  Finisterre  and,  at  2015,  6  ships,  presumably 
warships,  with  one  plane  on  course  190°  at  medium  speed  in  BF 
7522  (northeast  of  Ferrol)s  If  b^th  these  were  the  same  for- 
mation and  were  identical  with  the  ships  sighted  on  12  Jul0 
in  the  same  waters,  the  presence  of  anti-submarine  groups  of 
cruisers,  destroyers  and  guard  ships  with  planes  would  defin- 
itely be  confirmed,, 

At  0905,  two  destroyers  were  on  varying  courses  in  BE  6735« 

In  the  area  of  19th  Air  Group,  59  planes  were  observed  over 
the  outer  Bay  of  Biscay  up  to  14°  Wc 

Group  West  reports  that  radar  activity  by  the  same  British 
ships  in  the  big  grid  square  BF  70  has  been  observed  three 
times  in  May,  four  times  in  Junc  and  five  to  seven  times  be- 
tween 1  and  12  Jul,  and  gives  a  list  of  sightings  of  light 
British  forces  in  this-  area  reported  between  9  and  12  Jule 
The  Group  concludes  from  this  that  these  forces  are  presumably 
on  submarine  patrol  or  submarine  chasing  and  reports:   "It 
remains  to  be  seen  whether  this  is,  in  fact,  a  regular  sub- 
marine hunt  or  whether  it  is  merely  a  matter  of  escort  forces 
or  destroyers  on  t^ansfor  fr^m  England  to  Gibraltar  that  have 
been  ordered  to  hunt  submarines  in  this  area  en  routee   If 
submarine  hunting  is  the  force's  Lain  assignment  the  cruisers 
must  be  intended  as  systamatic  support  for  the  destroyers. 
Operations  by  our  surface  forces  are  not  yet  advisable  until 

re  information  is  available e  The  matter  will  be  followed 
up„" 


-I72-  CONFIDENTIAL 


CONFIDENTIAL 
13  Jul.  1943 

Information  received  on  the  evening  of  12   Jult  and  on  13 
Jul,  was  not  considered  in  this   statcsaent*     It  will  probably 
contribute   strongly  to  confirming  tho  above  sus;  ii.on, 

according  to  unconfirmed  intelligence  reports  from  Portugal, 
six  largo  British  warships  passed  Viano  di  Cast olio  towards 
tho  south  at  0430* 

2<>  Own  Situation: 

Atlantic  Coast : 

Enomy  pianos  attacked  Brest  North  airfield  from 
0644  to  0758.  Four  FW  190  pianos  certainly  shot  down  7  out 
of  17  Halifaxes  on  their  return  flight,  120  miles  west  of 
Brest ,  and  probably  shot  down  an  eighth.  Our  success  in 
bringing  down  onomy  planes  was  limited  by  lack  of  fuel  and 
ammunition, 

Because  of  now  mine  danger,  the  departure  for  exorcises  of 
8th  Destroyer  Flotilla  and  5th  Torpedo  Boat  Flotilla  was  de- 
layed till  2300,  Escort  and  patrol  services  wore  carried  out 
wi  t h  out  inc  id  ent , ' 

Channel  Coast: 

Escort  and  patrol  services  were  carried  out  ac- 
cording to  schedule e 

Group  West  has  forwarded  excerpts  from  the  battle  report  of 
minesweeper  M  "153"  of  10  Jul*  For  copy,  see  teletype  1925* 
The  possibility  mentioned  in  the  report  that  the  beat  was 
fired  on  for  a  tine  by  torpedo  boats  T  "24"  and  T  "25" .will 
be  investigated  by  Commanding  Admiral,  Defenses  West  on  14 
Jul, 

Group  '.lost  also  reported  plans  for  convoy  "Lothringen"  from 
25  to  29  Jul,  Torpedo  boat  escort  is  not  contemplated  in 
view  of  the  increase  in  enemy  counter-action^  For  copy  sec 
teletype  000 5/14 •  '     '  -    . 

Ill,  North  Sea,  Norway,  Northern  Waters : 

North  Sea: 

Escort  and  patrol  services  were  carried  out  only  on  a 
limited  scale  due  to  stormy  weather. 

No  other  important  reports  have  been  received© 

-173-  Confidential 


CONFIDENTIAL 
13  Jul,  1943 

Norway,  Northern  YJaters: 

10    Enemy  Situation: 

Twenty-eight  planes  were  detected  over  the  North 
Sea  and  no  planes  in  the  area  of  the  Iceland  Squadrons,, 

2q    Own  Situation: 

On  11  Jul,,  the  Ristiniemi  Battery  fired  eleven 
rounds  against  trucks  on  the  Ribachi  Peninsula,  On  12  Jul,, 
a  hunt  by  an  He  195  plane  for  a  sighted  enemy  submarine  had 
to  be  abandoned  because  of  the  bad  weather*  - 

During  an  enemy  air  attack  on  2  minesweepers  and  2  motor  mine- 
sweepers near  Vardoe  at  0055  on  12  Jul, ,  four  men  of  the 
motor  minesweepers  were  slightly  wounded,,  The  shooting  down 
of  &   of  the  12  attacking  planes  by  fighters  which  had  received 
warning  of  the  attack,  has  already  been  reported.  From  0057 
to  0101,  12  enemy  planes  attacked  the  Kiberg  Battery  where 
slight  material  damage  was  done.   The  Battery  reported  one 
plane  shot  down.  The  pilots  of  two  of  our  fighters  which 
crashed  near  Kiberg  were  picked  up  by  motor  minesweepers, 

Minesweeping  pinnaces  from  the  large  minesweeper  P^RIS  cut 
two  very  rusty  Russian  anti-submarine  inertia  conta&t  mines 
in  the  Breisound0 

During  a  raid  of  the  Kirkenes  Harbor  Protection  Flotilla  at 
Kongsfjord,  small  quantit? ^s  of  dry  provisions  and  wireless 
parts  were  discovered,, 

Escort  was  provided  for  23  northbound  and  24  southbound  ships. 
There  are  10  ships  in  the  arctic  Coast  area  awaiting  escort. 

Naval  Staff,  Submarine  Division  has  approved  in  principle  the 
suggestion  of  Group  North  Fleet  in  regard  to  assembling  the 
outgoing  submarines  into  successive  groups  at  Kristiansand 
South  or  Bergen  (see  VJar  Diary  11  Jul. )0  For  details,  see 
teletype  1000 , 

On  10  Jul,  Group  North  Fleet  asked  that  the  mining  of  the 
northern  and  southern  approaches  to  Port  Dickson  be  approved 
as  a  first  submarine  mine  operation  in  connection  with  the 
repeat  of  "Wunderland"  by  the  most  experiencec1  submarine  com- 
mandants. 

Naval  Staff  granted  basic  approval  with  the  comment  that 

-174-  f:CNFID3NTLJi 


CONFIDENTIAL 
13  Jul.  1943 

unless  the  mines  can  be  laid  during  surface  navigation  in 
the  dark_,  a  minimum  depth  of  18  meters  is  necessary 0 

Group  North  Fleet  consequently  postponed  the  operation  until 
the  second  half  of  August  when  prospects  will  be  better  than 
at  present  as  the  area  is  not  yet  free  of  ice  and  war  material 
transports  will  not  be  going  through  before  august* 

IV o   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea i 

!•    Enemy  Situation: 

The  enemy  carried  out  a  heavy  bombardment  in 
Kronstadt  Bay  at  noon  during  which  ten  direct  hits  were  made 
on  the  Peterhof  cathedral*  Bomber  and  fighter  formations  in 
tho  coastal  area  bombed  and  'strafed  the  Strelna  dockyards 
and  the  coastal  batteries,,  There  was  limited  air  activity 
over  Tyttors*  Twelve  tugs,  10  barges,  2  small  freighters  and 
8  patrol  boats  left  Kronstadt  for  the  west, 

2„         Own  Situation: 

In  the  area  of  Commanding  admiral.  Defenses  Baltic 
one  ELM/J  mine  was  cleared  near  Middelgrundo 

Three  leave  transports,  8  troop  transports,  2  tankers  and  1 
steamer  were  escorted  in  the  Baltic-  Sea  area0 

Minesweeping  in  the  Frben  Narrows  was  continueda 

V,  Merchant  Shipping: 

Bureau  of  Naval  Armament  has  prepared  survey  maps  on 
Germany's  cargo  traffic  with  foreign  countries  and- -on- -cargo 
traffic  between  German  seaports,   including  the  Netherlands, 
during  1942,     For   copy,    see  War  Diary,   Part  C,  Vol,  XIe 

VI,  Submarine  Warfare:  ' 

1»         Enemy  Situation: 

Nothing  to  report, 

2.         Own  Situation: 

An  enemy  submarine  in  BF  5872  fired  six  torpedoes 
at  U  "592"  which  evaded  thu  attack0     This  is  the  first  sub- 
marine attack  on  the  approach  route  for  about  eight  months. 


-175-  CONFIDENTLY 


CONFIDENTIAL 
13  Jul.   1943 

It  is  possible  that  two  other  boats,   of  which  no  news  has 
been  received,   have  also  been  sunk  by  submarines. 

An  enemy  plane  vhich  attacked  U  "333"  was  driven  off  after 
being  hit  by  gunfire. 

U  "172n   sank  the  steamer  AFfllCiiN  STAR  (8,200  BRT)   in  GB  5466* 
No  action  reports  have  been  received  from  the  other  theatresc 

VII  c     serial  Warfare; 

British  Islf^  and  Vicinity : 

3rd  ^ir  Force  had  147  planes  in  operation  in  the  Vfest 
Area,     During  the  day,  anti-aircraft  artillery  shot  down  4 
planes  off  the  ^tlantic  coast.     For  filter  successes  at  sea 
west  of  Brest,    see  Situation  Uest  .urea. 

During  the  day,   6  fighter  formations  with  about  90  planes 
wore   reported  to  have  flown  into  Belgium  and  northern  France 
without  attacking.     In  the  forenoon,  35  planes  were  observed 
flying  into  the  coastal  areas  of  western  France  and  several 
others  apparently  on  their  way  to    Italy, 

In  the  night  of  13  Jul,,   the  enemy  made  a  large-scale  attack 
concentrating  on  nachen.     Heavy  damage  was  caused.     For  de- 
tails,  see  Daily  Situation,,     Twenty-one  planes  were  reported 
shot  down,   one  of  them  by  anti-aircraft  artillery. 

Fifty-one  bombers  of  3rd  ^ir  Force  were   sent  out  against  Hull 
and  10  bombers   on  harassing  raids  against  the   south  coast  of 
England, 

Mediterranean  Theater: 

Throughout  13  Jul.,   the  enemy  air   campaign  in  the  land 
fighting  in  Sicily  was  continued  with  undiminished  vigor,     No 
enemy  air  activity  was   reported  from  the  Italian  area  and  from 
the   islands  of   Corsica  and   Sardinia,     An  enemy  torpedo  plane 
attack  on  Palau  in  the  night  of  12  Jul*  was  unsuccessfulo      In 
attacks  on  Sicilian  airfields,   4  Me  109  planes,   6  He  111  planes 
and  8  freight  gliders  were  heavily  damaged.      Three  of   the  at- 
tacking planes  were   shot  down.      Shortly  after  noon,  Messina 
was   attacked  in  four  waves.      Two-hundred  explosive  bombs  were 
dropped.      The  attack  was  repeated  less  effectively  during  the 
night  of  13  Julo      Three  enemy  planes  were  shot  down  by  ships' 
anti-aircraft  during  a  daylight  attack  on  a  convoy  to  Maddalena, 


-I76-  CONFIDENTIAL 


CONFIDENTIAL 
13  Jiil,  1943 

Our  bomber  formations  were  in  constant  action  against  naval 
and  land  targets^     During  the  night  of  12  Jul„  and  on  13 
Jul*   7  freighters  for  30,000  BRT,  were  sunk  and  10  freighters 
for  38,000  BRT  heavily  damaged.     Hits  were  scored  on  22 
ships  totalling  77 j 000  BRT  as  well  as  on  1  c raiser  and  1 
destroyer  or  light   cruiser.      The   cruiser  was  hit  by  a  tor- 
pedo,,  A  landing  boat  of  250  tons  was  also   sunk. 

Since  the  beginning  of   the  invasion  up  to   2400  on  12  Jul, 
our  Air  Force  has   sent  out  745  bombers,  heavy  fighters  and 
ground  attack  planes  against  enemy  landing  fleet.     Thirteen 
ships  for  77,500  BRT  and  3  landing  boats  have  been  ponk,  10 
ships  for  58,000  BRT  and  6  landing  boats  probably  sunkc   Seventy- 
six  ships  for  332,000  BRT,   1  battleship,  1  cruiser,   1  anti- 
aircraft cruiser  and  a  large  number  of  landing  boats  have  been 
damaged,      Three  hundred  and  thirty-six  of   our  fighters  were 
in  action  and  shot  down  49  one my  planes  and  anti-aircraft 
guns  have  brought  down  14  enemy  planes.     Bombers,   heavy  fight- 
ers and  ground  attack  planes  have  destroyed  11  enemy  planes© 

Eastern  Front: 

On  12  Jul.,  105  ^nerny  planes  were  shot  down  on  the  amy 
front.  No  important  reports  have  been  received  from  l+th   and 
5th  Air  Forces. 

VIII.  Warfare  in  the  Mediterranean  and  Black  Sea; 

'!•    Enemy  landing  in  Sicily: 

According  to  an  intelligence  report  of  11  Jul,  from 
the  U.S.  Embassy  in  Madrid,  the  operation  in  Sicily  is  not  the 
main  thrust  and  further  operations  at  other  points  are  to  be 
expected  shortly*  The  report  cannot  be  checked  and  is  submit- 
ted with  reservations o 

German  Naval  Command,  Italy  reports  that  no  further  landings 
have  been  observed.  During  the  night  the  enaiy  landing  forces 
stand  off  to  sea  away  from  the  coast0  Photographic  recon- 
naissance confirms  that  the  number  of  landing  vessels  off  the 
coast  has  decreased  considerably*  The  focus  of  enemy  opera- 
tions has  shifted  to  the  Straits  of  Messina0 

Air  reconnaissance  observed:  at  ©738,  2  battleships,  one  of 
them  doubtful,  and  20  large  transports  off  Go la;  at  0900,  30 
ships  off  Muro  di  Porco;  at  1140,  30  ships  entering  Augusta; 
at  1630,  2  battleships  off  Syracuse;  at  1841,  1  battleship^, 


-177-  ClNFIDENTL'vL 


CONFIDENTIAL 
13  Jul,  1943 

2  cruisers,  1  destroyer  off  Empedocle;  at  1942,  1  battleship 
at  Bizertae  as  no  reconnaissance  was  made  of  Bone  where  2 
battleships  had  been  reported  on  12  Jul. ,  and  as  the  battle- 
ships off  Gela  and  Empedocle  nay  be  these  same  units,  it  is 
•impossible  to  make  a  definite  statement  as  to  the  actual 
number  of  battleships  in  operation. 

At  09i5j  2  battleships  or  cruisers  bombarded  the  coast  near 
.oigust*.   ^n  Italian  dive  bomber  scored  a  hit  on  one  of  these 
vessels  at  noon. 

From  1200  to  1600,  the  coast  near  Empedocle  was  bombarded  by 
1  battleship,  2  cruisers  and  1  destroyer, 

The  damage  caused  by  the  enemy  air  attacks  on  Reggio  and 
Messina  on  12  Jul0  has  not  affected  our  supply  traffic, 

Air  attacks  on  13  Jul*  were  directed  against  ports  i      Jie 
Straits  of  Messina  and  against  Trapani0 

Submarine  U  "407"  reports  that  at  midnight  on  12  Jul*  it 
fired  four  torpedoes  against  a  light  cruiser  without  suc- 
cess and  at  0416  a  salvo  of  two  torpedoes  against  a  de- 
stroyer and  was  then  attacked  with  depth  charges,,  an   ex- 
plosion was  heard,  ^n  Italian  submarine  reported  two  ex- 
plosions after  firing  three  torpedoes  against  three  de- 
stroyers southeast  of  Syracuse,  at  2155  on  12  Jul,  another 
Italian  submarine  torpedoed  and  probably  sank  a  steamer  of 
15,000  BRT  north  of  Bone,  at  0115  on  13  Jul0 

During  the  night  of  12  Jul,,  3rd  and  7th  PT  Boat  Flotillas 
with  a  total  of  7  boats  were  in  operation  along  the  east 
coast  of  Sicily  as  far  as  Cape  Passero  outside  coastal  waters „ 
Italian  PT  boats  were  in  operation  in  the  coastal  zone*  The 
flotillas  did  not  leave  Messina  until  2230  and  were  delayed 
by  motor  gun  boats  so  that  they  had  to  turn  back  at  0300  off 
Syracuse  without  contacting  the  enemy.  On  the  way  back  the 
flotillas  had  an  engagement  with  two  groups  of  motor  gun 
boats  and  three  PT  boats  south  of  Messina  at  0515»  Tho  enemy 
fired  our  own  recognition  signals  and  was  hit  many  times.  Two 
of  our  PT  boats  were  hit.  The  flotillas  put  into  Salerno  where 
all  seven  vessels  are  at  present  cut  of  action  due  to  hits  or 
engine  trouble „ 

PT  boat  operations  from  the  narrow  Straits  of  Messina 
have  not  much  chance  of  success  vdiilo  the  nights  are 
so  short.  It  would  be  advisable  to  transfer  the  jump- 
off  bases  to  the  saith  coast  of  Calabria^ 


-178-  CONFIDENTIAL 


CONFIDENTIAL 
13  Julo  1943 

Naval  Staff  has  advised  High  Command  Army,  Ope rations  Staff 
op  Navy |  Air  Force,  Operations  Staff,  Chief  of  Operations 
Branch  Navy  and  General  Staff  of  the  Army-,  Naval  Liaison  " 
Officer  of  the  unsuccessful  PT  boat  operations.  For  copy, 
see  teletype  1855o       '  '.'<• 

2«    Other  reports  on  the  enemy  situation  in  the . 
Mediterranean;- 

According  to  Italian  reports,  12  unidentified 
vessels  entered  the  Mediterranean  via  the  Straits  of  Gibral- 
tar at  0030*  Exact  observation  was  impossible  cirri  to  bad 
visibility  <, 

Submarines  were  reported  at  positions  northwest' of  Nettuno, 
north,  of  Palermo,  40  miles  west  of  Cape  Passero,  30  miles 
south  of  Taranto  and  65  miles  west  of  Cephalonia0 

In  the  Western  Mediterranean,  15  freighters,  and  5  landing 
boats  with  12  escort  vessels  were  reported  sailing  east, 
30  miles  northwest  of  Bizerta  and,  .v.n  the  evening,  7  freighters 
making  for  Bizerta  harbor,  were  reported 0 

In  the  Eastern  Mediterranean,  our  air  reconnaissance  sighted 
3  passenger  ships  of  8,000  BRT  each  and  8,000  BRT  each  and  8 
freighters  of  3,500  to  8,000  BRT  with  2  destroyers  and  4  es- 
cort vessels  on  a  southeasterly  course,  30  miles  east  of  Derna 
at  1630, 

3 o    Other  reports  on   our  own  situation  in  the  Medi- 
terranean  and  sea  transport  situation? 

Nine  motor  minesweepers,  the  fast  escort  vessel 
SG  "10",  1  submarine  chaser  and  5  Italian  torpedo  boats  were 
on  escort  service  to  Sicily,  Corsica  and  Sardinia,,  Two  steam- 
ers were  •s-sscorted  to  Sicily  and  3  steamers. back  from  Sicily,, 
Traffic  to  the  other  islands :  comprised  10  steamers  and  2  tank- 
ers c  Qn  her  way  from  Palermo  to  Naples  the  steamer  C0SENZA 
(1,471  BRT)  was  sunk  at  1800  by  en^ny  torpedo  planes  50  miles 
south  of  Naples »  According  to  a  report  from  Group  West,  2  of 
our  freight  gliders  broke  away  from  the  plane  south  of  Port 
de  Buc,  The  crews  were,  picked  up  by  a  sea-rescue  boat,  . 

Between  2  ^pr.  and  9  Jul,,  a  total  of  22  naval  landing  craft, 
9  motor  minesweepers.,  60  tanker  barges  and  3  tanker  lighters 
left  Toulon  for  Italy*   On  12  Jul0  2  tanker  barges  and  2 
tanker-cutters  left  for  ■'  Savona0 


-179-  CCIJFIDENTIAL 


CCI.TIEOTIJ, 
13  Jul.  1943 

4.         .ir.-  i'aval  Group.    South; 

..egoan: 

The  DRaCHE  and  BULGi»-r£L».  with  4  notcr  minesweepers 
re  completed  the  nine  operation  in  the  Gulf -of  Petras  ac- 
cording to  plan.  In  the  night  of  11  Jul,  several  planes  were 
reported  flying  into  the  Peleponnose  and  back  from  the  area 
west  of  Crete  apparently  with  supplies  for  partisans.  No 
other  reports  have  been  received* 

Black  Sea: 


Enemy  Situation: 

active  small  vessel  traffic  was  observed  along 
the  Caucasus  coast 0 

Own  Situation; 

During  the  night  of  12  Jul. ,  miner  enemy  air 
activity  was  observed  on  the  patrol  line  off  Temriuk.  Short- 
ly before  midnight  on  the  same  night,  the  coast  west  of  Tagan- 
rok  was  bombarded  haphazardly  probably  by  5.7  cm  guns.  The 
:f  the  attack  was  not  identified,  at  1100  on  13  Jul. 
5  (Tr.N#:  or  7;  the  figure  is  net  clear  owing  tc  a  correction 
made)  enemy  planes  strafed  the  140th  Anapa  transport,  ^inor 
damage  was  sustained.   Three  men  were  wounded*   Supply  traffic 
to  the  Goten  bridgehead  was  resumed  on  schedule© 

During  the  night  of  13  Jul.,  3  boats  of  1st  PT  3oat  Flotilla 

have  been  assigned  to  operate  in  the  waters  northwest  :f 

Tuapse  and  3  boats  of  11th  PT  Boat  Flotilla  in  the  reconnais- 
sance sector  -est  of  Xheodosiai 

IX.   Situ '.r ion  East  ^sia: 

According  to  an  allied  Headquarters  communique,  allied 
war  ships  have  near  the  New  Georgias  sunk  1  Japanese  cruiser 
and  3  destroyers  and  probably  sunk  2  more  destroyers.  Allied 
heavy  bombers  bombed  airfields  on  New  Guinea  and  New  Britain 
and  Japanese  positions  in  the  Salamaua  area.  The  air  attacks 
in  the  Buin-ifunda  area  was  also  continued, 

.: cording  tc  a  report  from  the  U.S.  (?)  Department,  054  planes 
sank  a  Japanese  ship  near  attu  on  10  Jul.  One  ship  was  loft 
sinking  and  two  others  were  damaged.  On  11  Jul.,  surface 
forces  bombarded  Japanese  positions  en  Kiska^ 

No  Japanese  reports  on  these  actions  have  been  received* 

-180-  CCKFIDENTLX 


CONFIDENTIAL 
1U   Jul*  1943 

Items  of  Political  Importance: 

According  to  Reuter,  Knox  has  declared  that  he  regards  the 
forth-coming  submarine  campaign  as  a  serious  matter.  While 
it  was  true  that'  :,he   figures  on  shipping  losses  for  June  and 
the  month  before  were  favorable,  "we  nevertheless  are 
fighting  an  enemy  who  has  a  great  many  resources  at  his 
disposal,,"  The  enemy  was  better  trained  in  the  conduct  of 
submarine  warfare  than  any  other  nation.  He  himself  did 
not  doubt  that  submarine  activity  would  break  out  afresh 
in  other  areas,  Among  the  reasons  for  the  favorable  sit- 
uation in  the  North  Atlantic  were:  the  use  of  small  air- 
craft carriers  which  provided  an  "air  screen"  over  the  en- 
tier  Atlantic,  and  also  the  increased  and  more  skilful  use 
of  improved  anti-submarine  equipments 

It  is  officially  announced  in  Washington  that  Admiral  Robert, 
the  French  High  Commissioner  in  Martinique,  has  resigned  from 
office.  Henry  Hoppenot,  a  member  of  the  French  military 
mission  in  Washington,  is  mentioned  as  his  successor*  Hoppenot1 ; 
arrival  in  Martinique,  the  USA  would  re-establish  relations 
with  the  French  island.  Hoppenot  is  said  to  have  declared  that 
the  resources  of  the  French  Antilles  would  be  mobilized  a- 
gainst  the  Axis  and  that  all  French  war  and  merchant  ships 
in  that  area  would  be  placed  at  the  disposal  of  the  Allies. 
According  to  reports  received  by  Naval  Staff,  the  carrier 
BEARN  was  beached  with  flooded  engine s0  Her  40  planes  were 
destroyed  some  time  ago„   The  mine  cruiser  SMILE  BERTIN  was 
rendered  unuseable  by  removing  parts  of  the  engines e  The 
school  ship  JEAN  D'ARC  and  the  auxiliary  cruiser  BARFLEUR  are 
operational,,  Of  6  tankers,  2  are  intact  and  4  have  had  engine 
parts  destroyed. 

Conference  on  the  situation  with  Chief,  Naval  Staff ? 

I a    In  the  course  of  the  situation  report,  Chief  Naval 
Staff,  Operations  Division,  Operations  Branch  stated  that 
the  results  of  air  reconnaissance  and  radio  interception  in 
the  West  area  confirm  that  enemy  light  naval  forces,  including 
cruisers,  maintain  a  fairly  regular  patrol  in  the  vicinity  of 
Cape  Ortegal0  Chief,  Naval  Staff  pointed  out  that  it  was  up 
to  Group  West  to  judge  the  reliability  of  the  reconnaissance 
pilots  of  Air  Commander,  Atlantic  Coast  in  naval  observation: 
if  the  reported  observations  are  found  to  be  correct ^  the  plan 
to  use  our  destroyers  against  these  forces  will  have  to  be 
abandoned. 


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CCNFIDENTIAL 
14  Jul.  1943 

II.   As  PT  boat  operations  on  the  night  of  12  Julo  were 
again  unsuccessful,  Chief ,  Naval  Staff  phoned  Commanding 
Admiral,  German  Naval  Command,  Italy,  in  order  to  discuss 
the  causes  and  new  measures  to  be  taken,.  The  enemy  reac- 
tion makes  it  impossible  for  PT  boats  to  operate  out  of  the 
Straits  of  Messina  to  the  desired  extent.  Valuable  targets 
will  probably  continue  to  be  present  off  the  southeast  coast 
of  Sicily  in  the  immediate  future,  and  should  be  easier  to 
contact  from  the  east  and  by  avoiding  the  narrow  Straits  of 
Messina,  The  jump-off  bases  should  therefore  be  transferred 
as  quickly  as  possible  to  harbors  south  or  east  of  the 
Straits  of  Messina,  Commanding  Admiral,  German  Naval  Com- 
mand, Italy  will  make  a  summary  report  on  PT.  boat  activi- 
ties from  9  Julo  to  date. 

In  a  highly  restricted  circle : 

IIIo  The  Fuehrer  has  issued  the  following  directives  for 
the  future  conduct  of  the  campaign  in  Sicily: 

1»    The  bulk  of  the  Italian  forces  in  the  attack 
area  having  coDJLapsed,  the  German  forces  alone,  even  if 
combined  into  groups,  are  no  longer  strong  enough  to  push 
the  invading  enemy  back  into  the  sea,,  Further  enemy  land- 
ings in  the  west  of  the  island  must  also  be  reckoned  with,, 

20    The  immediate  task  is  to  delay  the  enemy  advance 
as  much  as  possible  and  to  halt  it  before  Etna  at  a  strong 
position  on  the  approximate  line  S0  Stefano  -  Adrona-  -  Catania 
(along  sections  of  the  river  and  covering  the  main  roads). 
Supplies  west  and  south  of  this  line  are  to  be  evacuated  by 
every  means  and  as  fast  as  possible. 

3«    General  Command  XIV  „  Tank  Corps  wi3Jl  move  at 
once  to  Sicily  in  order  to  reconnoiter  and  to  prepare  for  the 
occupation  of  this  lineB  Command  .and  sections  will  be  ar- 
ranged as  to  insert  the  remaining  Italian  forces  into  the 
German  formations,,  Detailed  instructions  will  follow© 

4«    As  reinforcements,  only  the  1st  Infantry  Para- 
chute Division  will  be  sent  for  the  present,,  The  transfer 
of  the  29th  Armored  Infantry  Division  will  depend  on  the 
amount  of  German  supplies  available  at  the  bridgehead,  which 
is  to  be  investigated  by  General  Command  of  XIV.  Tank  Corps 
and  reported  through  Commanding  General,  South©  It  will  also 
depend  on  whether  traffic  across  the  Straits  of  Messina  Strait 
can  continue  to  be  maintained  with  safety „  The  29th  Armored 


-182-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul.  1943 

Infantry  Division  will  first  bo  brought  into  the  Roggio  area 
where  it  will  be  prepared  for  transfer, 

5c    Besides  bringing  2nd  Air  Force  up  to  immediate  ' 
refilling  of  the  establishment  forthwith,  Commander  in  Chief, 
German  Air  Force  will  reinforce  it  by  two  groups  of  100-Bomber 
VJing  and  one  fast  bomber  group  (night)  planes  from  the  West 
as  well  as  by  one  fighter  and  one  bonber  group  from  the  south- 
east* 

IV,   The  German  General  attached  to  Italian  a.rmed  Forces 
Headquarters  called  on  the  Duce  on  the  evening  of  12  Jul,  to 
convey  to  him  the  Fuehrer's  views  on  the  failure  of  the  Naval 
Commandant  at  Augusta,  Admiral  Leonardi0   In  the  subsequent 
discussion  of  the  situation  in  Sicily,  the  Duce  stated: 

After  their  successful,  landing,  the  British  had  already  es- 
tablished themselves  so  strongly  in  the  southeast  of  the 
island  that  they  had  already  announced,  to  day,  the  occupation 
of  Syracuse  and  the  area  southwest  of  the  town0  This  showed 
that  they  already  felt  their  hold  to  be  securec   Unless  they 
could  be  expelled  from  the  island  within  the  next  few  days  it 
would  be  too  late0  It  was  most  unfortunate  that  the  attack  by 
the  "Hermann  Goering,!  Division  and  of  the  Italian  "Livorno" 
Division  against  the  Americans  at  Gela  on  11  Julc  had  been 
indecisive,  A  success  against  the  Americans,  whose  fighting 
qualities  were  not  yet  very  high,  would  have  bad  g>;eat  moral 
effect*  The  British  had  learned  quite  a  lot  during  the  North 
African  campaign  and  were  much  better  now  than  they  were  three 
years  ago. 

The  biggest  threat  was  to  the  area  south  of  Catania  as  un- 
doubtedly the  British  objective  was  to  gain  possession  of 
the  Straits  of  Messina  as  soon  as  possible*   The  British  were 
making  clever  propaganda  by  taking  back  prisoners  to  Tunisia 
but  letting  Sicilians  return  to  their  homes  if  they  were  sit- 
uated in  the  zone  already  occupied* 

The  invading  forces  were  being  continually  reinforced  and 
supplied  from  the  sea,   It  was  most  regrettable  that  it  was 
not  possible  for  the  Air  Force  to  take  stronger  action  a~ 
gainst  the  seaborne  supply  traffic*  Although  the  Air  Force's 
success  in  attacking  ships  and  landing  craft  was  fully  ac- 
knowledged, it  was  unfortunately,  numerically  inadequate. 
The  enemy,  on  the  other  hand,  had  today  attacked  Heggio  and 
the  airfields  at  the  southern  end  of  Calabria  with  about  300 
planes 0  Since  August  of  last  year  we  had  been  in  continuous 
heed  of  500  more  planes,  particularly  fighters,  and  therein 


-183-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul.  1943 

lay  the  cause  of  all  our  troubles.  Even  today  the  numerical 
strength  of  the  German-Italian  Air  Force  was  inadequate.  He 
had  therefore  ordered  General  Ambrosio  to  remind  the  German 
Armed  Forces  High  Command  once  again  of  this  situation  and 
to  request  reinforcements  for  the  German  Air  Forcec  The  Air 
Force  would  play  a  decisive  part  in  this  struggle* 

According  to  this  report,  received  from  Naval  Attache 
Rome,  the  Duce  is  shifting  responsibility  for  future  develop- 
ments largely  onto  German  shoulders,  -which  is  yet  another 
reason  why  assistance  should  not  be  delayed.  This  should 
consist  of  increasing  the  number  of  German  officers  in  the 
Italian  command,  if  in   open  assumption  of  overall  command  is 
impossible.  The  disgraceful  effect  of  the  enemy  propaganda 
on  the  Italian  soldiers  would  be  out  of  the  question  if  there 
were  German  officers  on  all  staffs  and  commands „ 

V\         Chief ,  Naval  Staff,  Quartermaster  Division : 

Armed  Forces,  High  Command,  Operations  Staff  has  issued 
the  following  directive: 

1.    Maintainence  of  sea  communications  across  the 
Straits  of  Messina  is  of  the  utmost  importance.   It  is  threatened 
by  the  enemy  Air  Force  and  also  from  the  sea  "f.s  enemy  PT  boat 
operations  in  this  sea  area  have  already  shown. f  The  Italian 
coast  defenses  alone  cannot  be  relied  upon  to  fulfil  this  task. 

2»    The  Fuehrer  has  therefore  ordered? 

a0    Italian  coastal  batteries  on  both  sides  of 
the  Straits  of  Messina,  vnose  materiel  is  adequate y   are  to  be 
manned  by  German  personnels  German'  supporting  detachments  may 
also  be  sent  to  reinforce  the  batteries  with  Italian  crews. 
Commanding  General,  South  will  have  to  prevail  upon  the  Ital- 
ians to  comply  with  this  German  demand  which  is  essential  for 
prosecution  of  the  Sicilian  campaign,, 

b0    For  this  purpose,  the  Navy  will  make  avail- 
able the  personnel  assembled  in  France  for  "Gisela"  (1723  men  - 
10  batteries) 0  The  present  essential  guard  duties  of  these 
battery  crews  will  bw  taken  over  immediately  by  Army  forces 
of  Commanding  General,  Vfest* 

c<,    Commanding:  General,  South  will  call  for 
this  naval  personnel  on  the  basis  of  the  investigation  now 
being  made  by  admiral  Voss  on  the  materiel  condition  of  the 
Italian  batteries. 


-184-  CONFIDENTIAL 

jy  n—  ,t — 


Confidential 

14  Jul.  1943 

d©    Commanding  General,  South  will  report  to 
armed  Forces,  High  Command,  Operations  Staff  on  the  measures 
taken. 

The  documents  were  made  available  to  ^rmed  Forces,  High  Com- 
mand, Operations  Staff  by  Naval  Staff,  Quartermaster  Division 
through  admiral,  Fuehrer  Headquartersc 

Chief,  Naval  Staff  wishes  to  be  kept  informed  on  the  progress 
made, 

VI „   Chief  of  Staff,  Naval  Staff  has  submitted  the  following 
draft  compiled  by  Naval  Staff,  Operations  Division,  Deputy 
Chief  of  Operations  Branch  for  Chief,  Naval  Staff's  teletype 
to  the  Fuehrer: 

"Events  in  Sicily  have  shewn  that,  although  a  fighting  spirit 
exists  in  many  parts  of  the  Italian  armed  Forces,  the  leader- 
ship has  obviously  completely  failed.  It  is  inconceivable  how 
two  naval  harbors  well  equipped  as  augusta  and  Empedocle  could 
be  made  useless  and  practically  abandoned  before  the  enemy  had 
even  attacked  if  there  were  any  kind  of  effective  leadership. 
The  problem  of  adequate  defense,  both  on  the  Italian  coast  and 
in  the  Balkans  which  is  largely  held  by  Italian  troops  is  as- 
suming increasing  importance.   The  Italian  Command  alone  is 
not  adequate  for  this  task.  Only  an  extensive  interspcrsion 
of  German  leadership  can,  in  my  opinion,  still  justify  the 
engagement  of  valuable  German  forces  in  the  areas  in  question," 

Chief  of  Staff,  Naval  Staff  had  already  instructed  Captain 
Junge  by  phone  on  13  Jul*  to  advise  the  Fuehrer  of  his  con- 
cern in  regard  to  the  intractable  and,  at  this  time,  especial- 
ly disastrous  operational  command  of  the  Italian  Navy  and  to 
report  that  Chief,  Naval  Staff  had  expressly  recommended  the 
employment  of  light  naval  forces  to  admiral  rticcardi.   If  the 
Fu-rhrer  considered  it  necessary  and  practicable,  he  was  ready 
personally  to  assume  command  of  the  Italian  Navy  immediately 
in  an  attempt  t  rally  the  loyal,  and  especially  the  younger 
•  Italian  officers*  It  might  thus  be  possible  to  get  at  least 
the  destroyers  and  submarines  to  take  the  resolute  action 
which  is  now  essentialc  As  soon  as  xiear  admiral  Voss  re- 
turns from  his  tour  of  inspection  in  South  Italy,  .Chief, 
Naval  Staff  plans  to  go  with  him  to  the  Fuehrer  in  order  to 
be  available  for  the  important  decisions  that  the  situation 
demands. 

During  the  ensuing  detailed  discussion  of  the  questions  al- 
ready dealt  with  on  13  Jul.,  Naval  Staff,  Operations  Division 


-185-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul.  1943 

expressed  the  opinion  that  the  next  practical  step  should  be 
to  secure  the  defenses  on  the  coast  of  southern  Italy,,  For 
this,  the  cooperation  of  the  Italian  forces  was  ind'ispensible. 
Consequently,  the  chief  concern  must  be  to  ensure  that  the 
Italian  troops  and  naval  forces  should  be  commanded  in  ac- 
cordance with  the  -\.b>vve  outline  in  order  to  forestall  a  break- 
down in  the  Italian  powers  of  resistance,, 

Chief,  Naval  Staff  closed  the  discussion,  stating  that  n'  Lhing 
more  could  be  done  before  the  return  of  Rear  admiral  Voss.  He 
intends  to  take  the  draft  of  the  teletype  to  the  Fuehrer  Head- 
quarters # 

Special  Items: 

I.  According  to  a  report  from  Bureau  of  Naval  Armament, 
Naval  (Ship)  Construction  Division  to  Commander  in  Chief, 
Navy,  the  dates  of  completion  of  types  XXII  And  S  VII  of  the 
Walter-series  submarines  will  be  postponed  by  threw  months  due 
to  difficulties  in  the  engine  construction.  It  has  also  been 
found  that  type  XVII  must  lay  to  for  nine  hours  in  order  to 
charge  the  batteriesc  In  subsequent  series,  it  will  be  pos- 
sible to  reduce  this  to  4i  hours.  In  type  XXII  these  charging 
difficulties  are  already  almost  overcome.  Commander  in  Chief, 
Navy  decided  that  type  XVII  should  be  built  in  spite  of  its 
known  defects  and  limited  performance,  in  order  that  large- 
scale  serial  cons true ti on,  based  on  experience  with  the  ex- 
perimental series,  may  be  started  as  soon  as  possible. 

II.  For  the  release  of  the  LMF-mines,  TInderwater  Obstacles 
Inspectorate  has  requested  permission  to  lay  an  operational 
trial  barrage,  by  ship,  at  a  depth  of  50  -  100  meters  in  the 
Skagerrak* 

Naval  Staff  has  concurred.  Naval  Command,  Baltic  Sea  has  been  in- 
structed to  include  the  barrage  in  the  general  barrage  plan  for 
the  Skagerr -.k  and  to  issue  the  necessary  orders,.  Naval  Staff 
also  called  the  attention  of  Bureau  of  Naval  Armament,  Under- 
water Obstacles  Branch  to  the  fact  that  apart  from  this  opera- 
tional trial  barrage  planned  by  Underwater  Obstacles  Inspec- 
torate, the  LMF-mines  are  also  now  released  for  operational 
use  by  PT  boats  and  pointed  out  that,  in  view  of  the  inten- 
sification of  the  Air  Force's  mine-laying  campaign  against 
England  to  be  started  at  the  end  of  August,  it  would  be  even 
more  important  to  release  the  LMF-mines  for  aircraft  use  than 
for  surface  force  operations, 

III.  Short  Reports  on  the  oituation  in  the  East  No,  2/43  by 

-186-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul,  1943 

Naval  Staff,  Naval  Intelligence  Division,  reports  on  the 
following  items: 

10    Transfer  of  submarines  to  the  Arctic  Ocean. 

2.    Warship  building  in  the  Black  Sea„ 

3o    Jhploymont  of  the  Black  Sea  Fleet  submarine 
tenders, 

4.  New  PT  boats  of  British  origin  for  the  Black  Sea 
Fleet, 

5,  Partisan  supply  in  the  Cr.'mea  by  D—  and  L-boats, 

6.  Naval  base  in  the  Shopi  River  mouth. 

7,  Hth  Naval  Guard  Brigade. 

8„    Tank  and  anti-aircraft  reinforcements  for  the 
"Oktiabrskaya  Revolutsia." 

9o    Seafaring  personnel  in  the  Soviet  array  and  women 
in  inland  navigation. 

10.   Harbor  facilities  at  Vladivostok. 

For  copy  as  per  l/okl  21112/43  gch.  see  War  Diary,  Part  D, 
Vol..  "Documents  on  the  Enemy  Situation." 

IV.   A  summary  of  data  on  the  enemy  obtained  by  radio  deciphering 
and  radio  interception  from  5-11  Jul.  is  given  in  Radio  Moni- 
toring report  No.  28/43-.. 

attention  is  called  to:  page  4>  submarine  hunting  operations 
by  enemy  light  naval  forces  in  the  Bay  of  Biscay;   page  6-9 > 
location  of  German  formations  by  the  Dover  radio  net;  enclosure 
4,  distribution  of  British  trawlers  and  auxiliary  vessels  in 
June  1943. 

Situation  on  14  Jul,  1943 

I .    War  in  Foreign  Waters: 

1,    Enemy  Situation: 

The  Commander  in  Chief  of  the  Hawaiian  Maritime  Front 


-187-  CCNF IDKNTIAL 


CONFIDENTIAL 
14  Jul.  1943 

issued  a  warning  to  allied  merchantmen  in  the  Central  and 
South  Pacific  on  30   Jun.  that  a  submarine  had  been  sighted 
in  0006  S  151  06  W0 

The  destroyers  MaiiGFOHD,  (BEEN,  and  FaREMHOLT  were  identified 
in  convoy  operations  in  the  Southwest  Pacific* 

2,    Own  Situation: 

No  reports  have  been  received  from  our  own  vessels,, 

Naval  Staff  has  informed  Ship  ''2 1-:  vy radiogram  0924,  that  the  blockade 
runner  captains  in  Japan  have  unanimously  requested  retention 
of  the  top  masts  for  purposes  of  observation.  Naval  Staff 
considers  that  ships  in  the  Atlantic  with  top  masts  erected 
are  particularly  endangered  because  of  their  striking  ap- 
pearance and  regards  the  reduction  of  sight-range  due  to  re- 
moval of  the  top  masts  as  less  serious.  Orders  have  there- 
fore been  given  to  instal  telescopic  top  masts t  If  this  is 
impossible,  at  least  one  top  mast  should  be  removed  so  that 
the  unequal  mast  lengths  as  commonly  used  on  enemy  ships, 
will  make  it  more  difficult  to  estimate  the  ship's  position. 
Ship  "28"  has  been  instructed  to  take  the  necessary  steps  at 
its  own  discretion. 

Ship  "28"'  was  also  briefly  informed,  by  radiogram  1305,  on 
the  military  situation  in  Sicily  and  on  the  Eastern  Front. 

Information  on  the  enemy  situation  was  transmitted  by  radio- 
gram 1412, 

IIQ   Situation  viest  Area: 

1,    Enemy  Situation: 

Thirty-three  plants  were  observed  over  the  Bay  of 
Biscay  up  to  18°  VJ,  mainly  between  0900  -  1100 „  British  ves- 
sels were  located  iri  BF  7565  at  0835  and  in  BF  8155  at  1025, 

kt  2025  on  13  Jul,,  our  air  reconnaissance  reported  5  ships 
sailing  south  in  BF  7522,  According  to  later  investigation, 
they  were  probably  destroyers  or  guard  ships0 

The  suspicious  rowing  boat  reported  on  the  evening  of  12  Jul, 
at  Pauillac,  was  found,  after  more'  than  24  hours  of  intensive 
invest L ration,  to  be  one  of  our  own  patrol  boats, 

20    Own  Situation: 

-188-  (DNFIDENTL'X 


CONFIDENTIAL 
14  Jul.  1943 

Atlantic  Coast: 

Throe  ELM/ J  mines  were  cleared  off  Lorient  and 
one  off  the  Gironde,   The  closing  of  the  roads  and  the  ap- 
proach to  La  Pailice  was  lifted,,  While  sweeping  channels 
in  the  waters  off  Brest 9   a  group  of  minesweepers  was  un- 
successfully attacked  by  enemy  planes  „  Minesweeper  M  "399" 
scored  a  hit  on  one  of  the  attacking  planes* 

Exercises  by  8th  and  5th  Destroyer  Flotillas  have  so  far  been 
carried  out  undisturbed* 

Channel  Coast: 

Patrol  positions  were  not  taken  up  due  to  bad 
weather.  Convoys  were  cancelled  with  the  exception  of  traf- 
fic to  the  Channel  Islands,  a  tug  was  attacked  and  damaged 
by  British  fighter-bombers  off  lie  do  Bas.  North  of  Ostend, 
a  Belgian  fishing  boat  struck  a  mine  and  sank* 

III,  North  Sea,  Norway,  Northern  Waters: 

North  Sea: 


A 


A  total   of  7  SLM/J  mines  was   cleared  near  Scheveningen 
and  south  west  of  Heligoland  including  one  cleared  by  the 
steamer  KORSOER  in  an  eastbound  convoy.     The   steamer  put  in 
to  Hook  van  Hollands      The  convoy  proceeded,, 

No  oth^r  reports  of  any  importance  have  been  received. 

Norway v  Northern  '/aters: 

1.  Enemy  Situation: 

Twenty  planes  were  observed  over  the  North  Sea 
but  no  planes  were  detected  operating  in  the  area  of  the  Ice- 
land squadrons.,  Our  reconnaissance  produced  no  tactical  re- 
sults either  in  the  west  or  the  east  of  the  area  of  5th  -iir  < 
Force.  At  0123  on  12  Jul.,  a  submarine  .was  sighted  near 
Kvalneset  by  three  of  cur  planes  and  attacked,  without  re- 
sults being  observed^ 

2 ,  Own  Situation : 

On  13  Julft,  th'e  Ristiniemi  Battery  bombarded  the 
Russian  Battery  "205"  with  25  rounds  from  1435  to  1512  and 
observed  hits.  Fire  was  returned  by  4  rounds  e  At  2118  another 

,- 

-189-  CONFIDENTIAL 


CONFIDENTLY 
14  Jul.  1943 

exchange  of  fire  began  between  the  batteries  of  both  sides, 
lasting  for  about  an  hour;      Tr.^  raids  in  Kongsfjord  were 
carried  on*     More  articles,   some  of   Russian  origin  were 
discov^reds     A  compromising  Norwegian  diary  was  seized.     Two 
parachutists  were  observed  near  Vardoe  in  the  Syltefjord, 
They  were  taken  in  by  boat. 

Forty-six  ships  were  escorted  to   the  north  and  21  ships  to 
the   s^uth.     Sixteen  ships  had  to  discontinue  their  voyage  due 
tc    lick  of  escort* 

Group  North  Fleet  considers  special  operations  in  Iceland  by 
coastal  commandos  of  the  "Brandenburg"  Division  inadvisable 
during  the   light  period  insofar  -  *  the  use  of   special  vessels, 
such  as  fishing  steamers  is   concerned.      The  use  of  submarines 
:  :>r  such   raids  is   also  out   of  the  question  at  this   season,   ac- 
cording  to  Group  North  Fleet.     Group  North  Fleet  will  there- 
fore apprcach  German  Intelligence  Service  and  Naval  Command, 
Norway  with  a  view  to   performing  a  prior  operation  against 
the   enemy  stations  on  Spitzbergen  with  assault  groups  to  be 
prepared  by  the  Intelligence  Service,,      Such  an  operation  can 
be  carried  out  during  the  light  period  and  nay  be  supported 
by  sutrrmrdnes   or   even  destroyers,   according  to  the  enemy  sit- 
uation as  revealed  by  reconnaissance B 

Naval  Staff  has  forwarded  its  approval  to  Group  North  Fleet. 

TJ i        Skagcrrak,   Baltic  Sea  Entrances,   Baltic   Sea: 

The  coastal  anti -submarine  listening  station  at  Skagen 
was  put  into   service  on  9  Jul.     One  ELM/J-mine  was   cleared 
north   of  Fehmarn3 

No  other  reports  have   come  in, 

V,    Submarine  Warfare: 

1.  Enemy  Situation: 

According  to  a  report  from  submarine  U  "181", 
there  were  3  medium-sized  steamers  at  Port  Louis   (Mauritius) 
on  1  Jul.,   two  of  uhich  left  on  2  Jul0     On  the  same  day,   a  3- 
stacked  cruiser  entered  the  harbor  and  left  again  on  3  Jul* 

20  Dwfl   Situation: 

U  "181"   sank  the  steamer  HOJHOW  (2,798  BrtT)   near 
Mauritius,      (s~o  Enemy  Situation) 


-190-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul,  1943 

In  the  Bay  of  Biscay,  U  "607"  was  attacked  by  an  enemy  plane 
while  submerging  and  was  probably  lost*  Two  other  submarines 
successfully  repulsed  enemy  planes ,  U  "953"  fired  a  salvo  of 
four  torpedoes  against  destroyers  in  BE  9259 o  U  "608"  sighted 
an  unidentified  submarine  in  BF, 

No  reports  of  interest  have  been  received  from  other  theatres, 

VI,   serial  War-faro : 

British  Isles  and  Vicinity; 

In  the  forenoon,  the  enemy  made  simultaneous  attacks 
with  strong  forces,  sometimes  escorted  by  fighters,  on  air- 
fields in  the  Western  France  area.  The  strongest  attack  was 
directed  against  Le  Bourget,  Damage  to  airfield  installations 
and  losses  of  planes  were  considerable  at  some  places.   For 
details,  see  Daily  Situation*  Defense  forces  shot  down  15 
fortresses,  4  spitfires  and  two  thunderbolts. 

During  the  night  of  14  Julj ,  harassing  flights  by  minor  forces 
were  reported,  mostly  from  Northern  Germany*  .-• 

Special  Items; 

The  strength  of  the  cn^my  air  forces  in  the  area  of  Great 
Britian  is  estimated  by  Commander   in  Chief,   German  Air  Force, 
Operations  Staff,   Foreign  Affairs  Section  as  follows: 

Aircraft  available  at  home: 

lc  British  aircraft: 

a<>  1,400  daylight  fighters 

'  700  night  fighters 

b,  for  night  operations:  1350  bombers,   of  which 

970  are  f our-cngined  and  500  more  bomb  -rs  from  training  for- 
mations «, 

c0  for  short-range  daylight  operations:   250 

bombers  ]    • 

d,  for 'Army  cooperation:  380  short-range  re- 
connaissance planes,  fighters  and  artillery  spotting  planes 
and  500  planes  for  transport  of  parachutists  and  for  towing 
freight  gliders 

e,  for  naval  purposes:   1130  planes,   including 
150   four-engined,   and  150  flying  boats, 

-191-  CU'FIDENTLOL 


CoNFIDiUTIAL 
14  Jul.  1943 

2„    U.vS.h,  Aircraft: 

ae  770  bombers,    670  of  than  four-engined 

300  -  400  fighters 

3»  In  Iceland ,  there  are  about  100  planes,    chiefly 

fighters  and  long-range  reconnaissance  aircraft,,  ,  ,  ., 

Total:     about  7»400  planes 3 

Mediterranean  Theater: 

The  enemy  Air  Force  made  no  flights  over   Corsica,   Sar- 
dinia or  Italy,   but   confined  itself  to   support  of  the  land 
fighting  in  Sicily,    continuing  the  attack  on  the   Straits  of 
Messina,     The  harbor  installations  and   the   town  of  Messina 
were  attacked  four  times  during  the  day  by  altogether  275 
four-engined  planes,,     Nine   planes  were  reported  shot  downa 

During  the  night  of  14  Jul3,   the  town  and  the   harbor' of  Naples, 
as  well  as  airfields  were  attacked  by  small  forces.     Four  Ju 
52  planes  were  put  out  of  action,.     In-effective  nuisance  raids 
were  directed  against  Falermo0 

The  Gurman  Air  Force  reported  that  among  other  results  ob- 
tained by  our  heavy  bomber  formations  on  the  night  of  13   Jul,, 
hits  were  scored  on  17  vessels  of  which  6  freighters  and  1 
LCT,   totalling  l6,0C0  BRT,  were  probably  sunk*     It  was  also  , 

reported  that  two  destroyers  were  hit  by  bombs  and  that  the 
new  Gorman  torpedo-carrying  group,  which  came  into  operation 
on  13  Jul,,  hit  a  cruiser  with  a  torpedOe  ■-•- — '- -*- 

Other  attacks  were  made  during  the  day  on  the   enemy-occupied 
airfield  at  Comiso,   the  port  of  Syracuse,   and  on  landing  boats 

and  motor  traffic 

.1 

•. 
Special  Items; 

According  to  information  from  Commander  in  Chief,    Air  Force, 
Operations  Staff,   Foreign  affairs  Section,   the  Allied  air 
forces  in  Northwest  africa  consist. of  3340  planes   including 
1150  bomber  and  reconnaissance  planes,  and  in  the  Lybia-Egypt 
area,   of  I38O  planes  including  620  bomber  and  reconnaissance 
planes  ft 

Furthermore,  about  17,500  parachute  troops  (15,700  parachu- 
tists) and  about  14,750  airborne  troops  are  being  assembled 
in  eastern  Algeria  and  Tunisia, 


-I92-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul,  1943 

Eastern  Front: 

Two  hundred  and  thirty-four  enemy  planes  were  shot  down 
on  the  <<.my  front,, 

No  reports  of  any  importance  have  been  received  from  4th  and 
5th  Air  Force e 

VH«  Warfare  in  the  Mediterranean  and  Black  Sea; 

!•»    Enemy  landing  in  Sicily; 

Up  to  midday  no  new  reports  on  the  situation  in 
the  landing  areas  had  reached  German  Naval  Command,  Italy. 
On  13  Jul, j  the  enemy  continued  the  attack  on  our  right  flank 
and  in  the  afternoon  also  invested  our  left  flank  with  strong 
infantry  and  tank  forces,  followed  by  air  borne  troops  and 
parachute  landings.  The  position  on  land  is  very  serious 
especially  since  new  landings  in  our  rear  arc*  to  be  expected 0 
Our  lines  were  again  withdrawn  a  little  to  the  ncrth  on  the 
evening  of  13  Jul<. 

Photographic  reconnaissance  of  13  Jul,  confirmed  a  consider- 
able reduction  in  the  number  of  landing  vessels  and  transports 0 
The  bulk  of  the  enemy  landing  divisions  seem  to  have  been  dis- 
embarkedj  There  is  no  proof  as  to  where  the  landing  vessels  with- 
drawn from  Sicily  now  are,  but  they  are  assumed  to  have  gone 
to  the  Tunisia  ~  Malta  area,  A  clear  picture  of  the  actual  and 
presumed  changes  in  the  strength  and  distribution  of  landing  and 
other  transport  vessels  throughout  the  Mediterranean  is  given 
in  the  daily  reports  by  Naval  Staff ,  Naval  Intelligence.  Di- 
vision in  War  Diary,  Part  D,  "Material  on  the  Enemy  Srtuation8" 
These  indicate  that,  from  12  JulP  to  13  Jul.,  46  LST  and  53 
LCT  or  LCI  were  withdrawn  f  r  m  the  Sicilian  area.  Therefore 
only  13$  of  the  LST  and  21$  of  the  LCT/LCT  are  still  in  the 
Licata  -  Syracuse  area,  i,e,  about ' 17$  of  all  the  landing 
vessels  presumed  to  be  in  the  Mediterranean.   Other  trans- 
port tonnage  in  this  area  is  stated  to  amount  to  about  24$ 
of  the  total  merchant  shipping  tannage  presumed  to  be  in  the 
Mediterranean,   The  opinion  of  Commanding  General,  South  that 
other  landings  may  be  expected  seems,  therefore,  quite  reason- 
able 0 

In  the  course  of  the  day,  the  enemy  pressure  increased,  par- 
ticularly in  the  Straits  of  Messina,   Considerable  quantities 
of  the  munitions  were  destroyed  during  a  he  avy  air  attack  on 
Messina,   The  steamer  PiiTrtLk  was  sunk.  Air-borne  troops  and 
parachute  landings  near  Gerbini  created  a  threat  to  Catania c 


-193-  conf  identl;l 


cqnfe)e:tl;l 

14  Jule  1943 

However,   some  of  these  troops  -were  annihilated.     Great  ccn- 
cern  is   felt  at  the  report   that  cne  of   our  unloading  stages 
at  Mclini  (north  of  Catania)  has  boon  destroyed  b-  the  Italian 
civilian  population  in  spite   of  the  Italian  guards,   and,  that 
the  Italian  coast  defence  forces  b  iv£  been  withdrawn  froin 
Kolini, 

Cor.  jeneralj   South  has  if&ued  the  following  orders  for 

the  defense  of  the   Straits  of  Messina: 

Ie  In  order  to   secure  a  unified  connand  in  the  de- 

fense of  the  Straits   of  Messina,  the  position  of   German   -  t- 
mahdantj   Straits  of  Messina  has  been  established.     Colonel 
Baade  has  been  assigned  to  this   post  subordinate  to  the  Con— 
Cendant  of  the  German  Armed  Forces  in  Sicily c     Colo.         at, 
Straits  of  Messina  will  b^   in  command    _i:     the  fighting  troops 
:   that  area,    ~::.;rgency  units,  anti-aircraft  artillery  groups, 
Naval  iirtiller^-  degiment  616.     Transport  and  supply  servicas 
will  be  placed  under  his  command  only  in  case  of  direct  eneny 
attack. 

2,  German  anti-aircraft  battories  have  be~n  ordered 
to  attack  targets  at  sea.     In  cas^  of   simultaneous  air  attack, 
sea  targets  will  have  priority  cv~r  air  defence.     An  effort 
will  bo  made  to  get     similar  ordors  issued  to  the  Italian  anti- 
aircraft guns. 

3.  Ge-rroan  Naval  Command   "..ill     stablish  an  advanced 
patrol  service  off  the  Straits  t;:   means  of  artillery  lighters, 
Siebel  battle  ferries,  and  motor  iainbsweepersa 

4»  ngan  offices  and  units  hove  been  ordered  to  pre- 

vent destruction  of  batteries  by  th«2  Italian  crews  when  not 
justified  by  the  enemy  situation,  and,  if  necessary,  to  man 
the   batt~rios  themselves. 

German  Naval   Cor.    n  ' ,    Italy,  has  ord-r^d  th_-  re-farming  of  two 
naval  artillery  light -rs  and  the   conversion  of  further  Siebel 

rries  into  battle  ferries  for  the  Straits   of  Mossina.     The 
1st  Batt.ry,   -.'aval  Artillery  Regiment  6l6  is   to  take  up  a 
provisional  firing  position  south  of  Reggio.      Our  supply  base 
in  western  Sicily  has  been  ordered  to  evacuate. 

Our  =ir  reconnaissance  det~ct^   15  snail  vessels,   presumably 
in  waiting  pesiti^ns,   off  the   southern  coast  25  miles   southwest 
of  Licata   at  o725,    and  12  transports  10  miles   south-southwest 
licata  making  for  Impede cle  at  103  5«     Off  the   southeast 


-194-  CONFIDENTIAL 


CONFIDENTIAL 
14  Jul,  1943 

coast,  there  were  30  transports  and  several  landing  vessels 
east  of  Catania*  8  freighters  and  15  landing  vessels  in 
Augusta  and  five  destroyers  were  cruising  off  the  port. 
Twenty-two  freighters  were  at  Syracuse  and  8   PT  boats  and 
4  destroyers  off  the  harbor,, 

At  0725,  1  (apparently)  aircraft  carrier,  1  big  transport 
and  17  freighters  (135,000  BiiT)  were  sighted  north  of  La 
Valettft,  and  five  transports  (75*000  BAT),  7  freighters 
(53,000  BUT),  1  destroyer  -   14  LST,  some  carrying  motor 
vehicles  and  5  big  landing  boats  were  seen  southeast  of  La 
Valetta.  There  were  2  cruisers,  1  destroyer,  3  escort 
vessels  and  1  freighter  of  15,000  BRT  at  Marsa  Scirocco0 

According  to  a  sighting  report,  there  were  3  big  transports, 
21  LST,  2  tankers,  1.6  LST,  40  landing  boats  and  2  destroyers 
at  Bizerta  at  0735. 

nt  Bone  at  1510;,  there  were  5  transports^  3  freighters,  21  LST 
and  14  small  vessels ,  and  in  the  roads,  14  freighters,  7 
LST  and  2  landing  boats c  Neither  of  the  two  battleships  was 
sighted  again. 

Supplies  for  the  invasion  troops  in  Sicily  therefore  seem  to 
come  from  the  Bizerta  area  via  Malta.- 

No  action  reports  have  been  received  from  our  own  or  the 
Italian  submarines,  Art  Italian  PT  boat  reported  sinking  an 
enemy  destroyer  off  Augusta,  no  time  being  specif ied„ 

ii.  summary  of  the  activities  of  3rd,  7th  PT  Boat  Flotillas 
since  9  Jul «  by  German  Naval  Command,  Italy  reports i 

"9  Jul.,  3rd  PT  Boat  Flotilla  -suable  to  penetrate  from 
Empedocle  to  the  east  through  several  cardons  of  MGBs  in 
spite  of  trying  for  two  hours 0  The  main  landing  area  is  not 
yet  clear, 

10  Jul*,  3rd  PT  Boat  Flotilla  was  greatly  delayed  by  sea  dam- 
age, engine  trouble,  and  rudder  failures  and  was  only  able  to 
get  to  about  the  level  of  Catania*  After  that  boats. were 
out  of  action, 

11  Jul.,  7th  PT  Boat  Flotilla,  en  route  from  Cagiiari  to 
Sicily,  went  in  search  of  the  formation  that  bombarded  Trapani, 
but  it  was  too  late  to  make  contact,, 

12  Jul.,  type  S  151  had  persistant  engine  trouble,  so  that  it 

-195-  CONFIDENTLY 


confidently 

14  Jul.  1943 

was  not  until  2230  that  seven  boats  left  Messina  for  a  thrust 
into  the  reconnaissance  lines  at  intervals  of  two  miles, 
speed  24  knots,  making  a  wide  s^'eep  towards  east,  course 
200°  up  to  CN  3255.   Several  steps  off  Augusta  to  let  MGB 
Groups  pass.  Thereafter  speed  of  15  knots 3  No  large  ships 
were  sighted,  no  vjumy  activity  observed.  At  0300,  turn  a- 
bout.  Two  engagements  with  KGBs  which  were  hit  many  times, 
--lS  present  sighting  range  is  5  to  6  miles ,  it  is  impossible 
to  approach  unobserved  to  within  firing  range..,  Today,  only 
one  boat  is  operational, 

15  Jul.  operations  are  planned  for  four  boats  of  7th  PT  Boat 
Flotilla  and  throe  boats  of  3rd  PT  Boat  Flotilla," 

2 o    Other  Reports  on  th e  Enemy  Situation  in  the 
Medit  er rane  an ; 

i>.t  1800  on  13  Juln>  a  convoy  of  11  freighters 
entered  Gibraltar  from  the  Mediterranean.  At  2000,  3  French 
freighters  left  the  harbor  towards  the  east.  They  were 
sighted  at  1705  on  14  Jul,  near  Cape  Tres  Force  s8   at  2030  on 
14  Jul.,  a  convoy  of  32  loaded  freighters  entered  Gibraltar 
from  the  Atlantic* 

No  other  sighting  reports  on  shipping  traffic  have  been  re- 
ceived from  the  Western  or  Eastern  Mediterranean, 

On  the  evening  of  13  Jul,  and  on  14  Julo,  submarine  posi- 
tions were  reported  near  Leghorn,  Ostia,  Cape  Vaticano,  north 
of  Cape  Camino  (Sardinia),  east  of  Porto  Vecchio,  south- 
southwest  of  Cagliari,  70  miles  south  of  Taranto  and  south 
of  Durazzo  in  the  Adriatic,, 

according  to  our  Radio  Intelligence  the  center  of  enemy  air 
reconnaissance  was  in  the  Tyrrhenian  Sea  around  Sardinia, 
Our  convoys  were  repeatedly  attacked, 

3 ,    Other  Reports  on  our  own  Situation  in  the 
Mediterranean  Sea: 

Transport  Situation: 

The  following  vessels  were  engaged   in  escort 
service  to  tho  islands:  2  en ti -aircraft  corvettes,  1  aviso, 
3  submarine  chasers,  4  motor  mine swee per s,  3  auxiliary  motor 
minesweepers,  and  3  Italian  torpedo  boats r  altogether  2 
tankers  and  7  steamers  were  escorted  ,  2  of  them  from  Sicily 


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CONFIDENTIAL 
14  Julo  1943 

to  Italy.  Of  those  the  steamer  SAN  F&iNZISKO  (6,013  BRT) 
was  sunk  by  an  aerial  torpedo  attack,  At  1713,  the  steamer 
CPT.  DE  DIABAT  (3,107  BflT)  wis  also  sunk  by  aerial  torpedo 
between  Elba  and  Madlalena,  Our  submarine  chasers  were 
slightly  damaged  and  suffered  casualties.  Two  of  the  at- 
tacking planes  were  shot  doim0 

4„    a.rea  Naval  Group,  South; 

Aegean? 

The  DR..CHE.  BULGaRL.,  and  BaRLETT/.  completed  the   • 
mine  operations  according  to  plan  and  transferred  from  Patras 
to  Piraeus 3 

The  tugs  and  auxiliary  sailing  vessels  sank  by  enemy  sub- 
marine fire  in  the  Bay  of  Salonika  will  be  recovered,.   The 
damaged  steamer  VESTa  has  been  brought  into  Piraeus ^ 

according  to  reports  from  Army  Group  Southeast^  the  railway 
bridge  near  Lannia  was  blown  up  by  rebels  an.1,  one  of  our  am- 
munition trains  was  ambushed  and  largely  destroyed,, 

Navy  ammunition  is  not  involved. 

Black  Sea; 

One  of  our  boats  reported  an  engagement  with  an 
unidentified  enemy  vessel  on  the  Temriuk  patrol  route  from 
0110  to  0115,  no  results  having  been  observed.  Ten  more 
mines  were  cleared  :in  the  barrage  southeast  of  the  Straits 
of  Kertch,  No  other  reports  have  been  received, 

VIII a  Situation  East  Asia: 

According  to  Japanese  and  Allied  reports ,,  a  battle  took  :  . 
place  between  light  naval  forces  of  both  sides  in  the  Gulf  of 
Kula  during  the  night  of  12  Jul0  The  Japanese  report  that 
two  Allied  cruisers  were  sunk  .and  a 'third  set  on  fire  and  ad- 
mit heavy  damage  to  one  of  their  own  cruisers 0   The  Allies  re- 
port that  one ' Japanese  light  cruiser  and  three,  destroyers  were 
sunk  and  two  other  destroyers  probably  sunko   ,*  •  2 

According  to  DNB  reports,  military  circles  in  Tokyo  have  stated: 
that  the  enemy  is  trying  to  encircle  the  Japanese  base  at  Munda 
from  the  south  and  from  the  north  and  that  troops  were  also  re- 
cently landed  in  Rice  Bay  and  on  the  Bai  Kolo  coast  for  that 
purpose,  Heavy  fighting  is  reported  to  be  going  on  for  the 
possession  of  Munda,  The  situation  at  this  base  is  said  to 
be  critical o 

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CONFIDENTIAL 
15  Jul.  1943 

Items  of  Political  Importance: 

During  a  debate  in  the  House  of  Commons  on  the  shipping  policy 
of  the  British  Government,  a  representative  of  the  Board  of 
Trade  revealed  that  there  had  been  two  occasions  when  the  British 
shipping  position  was  so  critical  as  to  jeopardize  the  entire 
course  of  the  war.  The  first  crisis  was  in  the  spring  of 
1941,  the  second  in  the  spring  of  1942  when  Japan  had  entered  - 
the  war  and  the  Allies  had  lost  more  ships  than  they  were 
able  to  build .  During  the  summer  of  1942  >  Great  Britain  was 
again  in  an  extremely  serious  position*  Undoubtedly,  he  said, 
the  possibility  of  losses  again  rising  to  a  dangerous  level 
must  be  taken  into  account,  Canada  was  at  present  building 
about  the  same  amount  of  merchant  tonnage  as  Great  Britain, 
American  ship  building  this  year  would  come  to  about  20  mil- 
lion tons  capacity,, 

According  to  lieuter,  it  has  been  authoritatively  stated  in 
both  Washington  and  London  that  recognition  of  the  French  Com- 
mittee in  Algiers  as  the  Government  of  France  was  not  at  present 
feasible.  In  a  message  to  the  French  people  on  the  occasion 
of  14  Jul.,  Eden  declared  that  he  would  like  to  be  able  to 
make  announcements  which  would  bring  the  uncertainty  in  France 
to  an  end  but  that  he  could  not  do  so  without  jeopardizing  the 
secrecy  of  military  operations, 

Mr.  Eden  further  informed  the  House  of  Commons  that  the  ad- 
ditional press  reporters  sent  to  North  Africa  were  to  be  re- 
called, xt  had  never  been  intended  for  them  to  be  there  for 
more  that  a  limited  period. 

The  Argentine  Government  has  ordered  the  activities  of  the 
Association  of  German  Welfare  Organizations  and  Cultural  Clubs 
to  be  discontinued.  At  the  same  time,  several  organizations 
of  the  "Allied  Assistance"  are  said  to  have  been  closed. 

The  alleged  aims  of  nnglo-Ame rican  strategy  are  the  subject 
of  an  article  by  Walter  Lippmann  in  the  "New  York  Herald 
Tribune."  These  are,  according  to  Lippmann,  the  acquisition 
of  new  bases  in  the  Mediterranean  area  and  in  Scandinavia  for 
the  preservation  of  the  campaign  in  the  air,  the  tying  down  of 
German  reserves  by  landings  in  the.  Mediterranean  area,  and  the 
preparation  by  these  diversions  of  a  landing  in  northern  Europe 
which  without  such  preliminaries,  would  be  impossible  to  carry 
out  from  England.  The  rapid  advance  in  Sicily,  where  resis- 
tance has  been  found  to  be  weak,  offers  hope  for  an  accelera- 
tion of  these  plans 0 


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CONFIDENTIAL 
15  Jul.  1943 

For  a  detailed  summary,  to  be  issued  by  Supreme  Command,  Armed 
Forces,  High  Command,  Intelligence  Division,  see  Vlar  Diary, 
Part  B,  Vol,  V, 

Naval  Attache,  Tokyo  reports  on  talks  with' Japanese  naval  of- 
ficers in  regard  to  the  situation  in  Japan,  as  follows: 

1„    "Kiska"  is  to  be  gradually  evacuated  and  the 
"Kuriles"  to  be  speedily  fortified  instead, 

2,    Developments  in  relations  with  Russia  are  the  main 
problems  at  the  moment*  For  well-known  reasons,  Japan  is  still 
seeking  to  avoid  bringing  matters  to  a  head  at  least  until  the 
beginning  of  winter,  when  Valdivostok  will  be  practically  the 
only  place  from  which  Japan  can  be  threatened  from  the  air0  It 
is,  moreover,  still  widely  hoped  that  Germany  may  seek  to  settle 
the  war  with  Russia  by  political  channels ,  a  development  wru.ch 
would  become  impossible  in  case  of  a  Japanese  -  Russian  con- 
flict. According  to  Japanese  observations,  Russia  too  is  try- 
ing to  postpone  the  inevitable  breaking  off  of  relations  as 
long  as  possible,  if  only  in  order  to  avoid  the  loss  of  the 
supply  route  via  Vladivostok,,  On  the  other  hand,  the  existing 
tension  is  quite  apparent,  especially  since  two  Soviet  freight- 
ers were  detained  at  Hakodate 0  The  Russians  refuse  to  grant 
visas  for  Siberia  and  are  being  troublesome  about  the  oil  con- 
cessions in  Sachaiin.  In  Tokyo  the  employees  of  the  Soviet 
Embassy  are  kept  under  strictest  surveillance*   The  unobserved 
establishment  of  American  bomber  bases  is  greatly  feared  in 
Japan o  For  that  reason  too  the  Japanese  Army  iu  Manchuria 
amounting  to  over  one  million  men  is  kept  at  constant  readi- 
ness. There  have  again,  recently^  been  many  rumors  of  the  re- 
placement of  the  Japanese  Ambassador  in  Moscow  by  "Todo", 
"Hirota"  or  even  "MatsuokaM0  . 

3o    In  China,  attempts  to  reach  an  agreement  with 
Chungking  had  admittedly  made  no  progress  and  are  realize-.!  to 
be  hopeless 0  Only  a  few  generals  have  been  won  over, 

4e    The  most  serious  bottleneck  is  still  the  lack  of 
shipping.  New  constructions  amounts  to  only  60,000  tons  per 
month  as  against  a  monthly  loss  of  :£0,000  tons.  Three  quar- 
ters of  the  losses  occur  in  the  Melanesian  area,  .Losses  have 
so  far  been  slight  in  the  Bay  of  Bengals 

5o    In  the  domestic  field  the  influence  of  radical 
elements s  whose  activities  have  never  been  entirely  curbed  in 
spite  of  the  strongest  measures,  has  increased  since  the  dis- 
solution of  the  Comintern  to  the  detriment  of  armament  produc- 
ti one  But  the  Armed  Forces  also  complain  bitterly  about  the 


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CONFIDENTIAL 
15  Jul.  1943 

general  populace,  which  is  not  influenced  by  these  tendencies, 
and  about  certain  leading  intellectuals,  whom  it  has  so  far 
been  impossible  to  instil  with  a  proper  understanding  of  the 
importance  of  the  struggleB   This  is  mainly  due  to  the  fact 
that  the  people  have  still  hardly  been  touched  by  the  war, 

60    In  case  "To jo",  who,  in  the  eyes  of  many,  has 
alroeidy  been  too  long  in  office,  relinquishes  his  post,  Ad- 
miral "Toyoda",  Commanding  Admiral  at  Yokosuka,  and  Suzuki, 
Head  of  the  Planning  Department  are  first  on  the  list  of 
possible  successorSo 

r 

Conference  on  the  Situation  with  Chief,  Naval  Staff: 

lo    Naval  Staff  considers  thatArmed  Forces,  High  Com- 
mand, Operations  Staff  should  be  informed  of  the  temporary  re- 
tention of  the  seven  boats  of  12th  Motor  Minesweeper  Flotilla 
in  the  Italian  area  and  suggested  that  the  following  teletype 
be  sent  to  the  Armed  Forces,  High  Command,  Operations  Staff, 
Navy: 

The  transfer  of  12th  Motor  Minesweeper  Flotilla  from  the  Ital- 
ian area  to  the  Aegean,  as  ordered  by  Naval  Staff,  was  carried 
out  to  the  extent  that  five  boats  are  now  operating  in  the 
Aegean,  Of  the  remaining  seven  boats,  three  are  still  being 
reconditioned  at  Marseille0   Since  the  nrmy,  the  Air  Force, 
and  thus,  also  the  German  transports  are  still  being  rein- 
forced, and  due  to  the  necessity  of  defending  the  Straits  of 
Messina  as  expressly  ordered  by  Commanding  General,  South,  the 
boats  of  12th  Minesweeper  Flotilla  ^till  in  the  Italian  area 
have  been  temporarily  placed  at  the  disposal  of  German  Naval 
Command,  Italy 0 

Simultaneously,  German  Naval  Command,  Italy,  Group  South  and 
Commanding  admiral  Aegean,  should  be  instructed  as  fellows: 

In  regard  to  the  boats  of  12th  Motor  Minesweeper  Flotilla  tern-- 
porarily  placed  at  the  disposal  of  German  Naval  Command,  Italy, 
it  should  be  kept  in  mind  that  it  is  still  intended  to  trans- 
fer the  whole  of  12th  Motor  Minesweeper  Flotilla  to  the  Aegean* 
Completion  of  the  transfer  is  postponed  only  because  this  does 
not  seem  to  be  an  appropriate  moment  in  view  of  the  situation 
in  the  Italian  areaw  *   situation  may  arise  in  which  German 
Naval  Command,  Italy  will  have,  on  its  own  initiative,  to  de- 
tach some  or  all  of  the  boats  and  order  the  transfer  of  the 
Greek  area, 

Chief,  Naval  Staff  concurred*  For  order  l/3kl  I  a  20001/43 
Gkdos,  see  War  Diary,  Part  C,  Vol*  d. 

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CONFIDENTIAL 
15  Jul.  1943 

Ho   Gorman  Naval  Command,  Italy  reported  to  Naval  Staff, 
Quartermaster  Division  on  13  Jul,: 

3rd  and  7th  PT  Boat  Flotilla  have  received  the  following  in- 
structions : 

Salerno  will  be  the  base  for  3rd  PT  Boat  Flotilla  and  Taranto, 
will  be  prepared  by  7th  PT  Boat  Flotilla,  after  approval  by 
the  Italicvn  Navy,  zs   an  alternative  base  for  boats  which  may 
be  dispersed  to  the  east.  In  addition  to  Trapani,  Palermo 
etc,  a  suitable  operational  base  is  to  be  prepared  on  the 
continental  side  of  the  Straits  of  Messina,  if  possible  near 
Reggio*   Cr;tone  in  the  Gulf  of  Taranto  will  also  be  usedo 
The  fitting-out  of  Viareggio  as  a  base  for  7th  PT  Boat  Flotil- 
la has  been  temporarily  postponed. 

Chief,  Naval  Staff  wishes  Commanding  Admiral,  German  Naval 
Command,  Italv  to  be  instructed  that  Salerno  is  not  suitable 
as  3   base.   The  PT  boats  should  not  return  there  after  their 
next  operation.   There  would  have  to  be  a  brief  postponement 
of  operations  vjhile  a  base  south  or  east  of  the  Straits  of 
Messina  i  -  f»a$  up, 

III,  Chief,  Naval  Staff,  Quartermaster  Division  reported : 
With  reference  to  the  evacuation  of  bases  in  western  Sicily 
which  has  been  ordered,,  naval  establishments  at  present  ' .n' Sicily 

sprite  about  L<  3  uf.fj.rers  and  £,J>C0  pettj  ^fi^cers  and  men* 

In  a  highly  restricted  circle: 

IV,  Naval  Staff,  Operations  Division,  Chief  of  Operations 
Branch  reported  that  AQUILA  III  has  arrived  in  Singapore  and 
KAROO  POLO  will  be.  at  the  rendezvous  position  shortly b 

V,  Concerning  the  order  of  Supreme  Command,  Armed  Forces, 
High  Command,  Operations  Staff  on  the  coast- defense  of  the 
Straits  of  Messina  (see  1'Jar  Diary  14  Jul.),  Chief,  Laval  Staff, 
Quartermaster  Division  reported  that  a  preliminary  order  ha^ 
aireae.y  been  issued  by  the-  Quartermaster  Division   For  copy 

as  per  l/Skl  see  War  Diary,  Part  C,  Vol,  X. 

VI,  In  connection  with  Naval  Attache,  Tokyo's  report  on  the 
situation  in  Japan,  (see  Items  of  Political  Importance),  the 
question  of  an  outbreak  of  war  between  Japan  and  Russia  was 
discussed.   The  German  opinion  up  to  now  has  been  that  such 

a  conflict  would  be  unfavorable,  as  the  Japanese  need  all  their 
forces  in  China,  and  particularly  in  the  south  west  Pacific, 


-201-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

to  fight  and  hold  the  Anglo-Americans.  This  opinion  was 
largely  based  on  considerations  of  the  strategic  consequences 
that  the  successful  accomplishment  of  our  Suez  operation 
would  have  had  on  German  -  Japanese  cooperation  against  the 
Britain's  life-line,  the  sea  route  to  India.  Sha  question  is 
whether  this  opinion  still  corresponds  to  the  development  of 
the  general  war  situation.  However  desirable  a  relief  on  the 
Eastern  Front  might  be,  it  remains  to  consider  whether  a  prob- 
able Japanese  set-back  in  the  Pacific  would  not  relieve  the 
Anglo-Americans  too  much.  Besides  it  is  by  no  means  certain 
that  the  Japanese  would  gain  a  speedy  success  against  the 
Russians  in  rianchukuo,  as  the  opposing  forces  must  be  almost 
equal  in  strength,  A  protracted  war  would,  on  the  other  hand, 
put  a  heavy  strain  on  the  situation  in  China  and  in  the  south- 
west Pacific,  especially  since  the  Japanese  war  potential  and 
transport  facilities  in  particular  are  rather  limited.   Fin- 
ally the  political  interest  of  the  fact  that  the  only  way  of 
making  a  political-diplomatic  approach  to  I.oscow,  with  a  view 
towards  easing  the  present  military  situation,  is  undoubtedly 
through  Tokyo,  should  not  be  underestimated.  The  decision, 
therefore,  depends  largely  on  how  the  Japanese  -  Russian  pro- 
soects  in  case  of  war  are  assessed.  Even  if  the  Japanese  were 
to  gain  swift  successes  at  the  outset,  the  vastness  of  the  area 
remains  a  dangerous  obstacle  to  the  final  attainment  of  the 
objective.  Vestigia  terrentj   In  favor  of  an  attack  on  Russia 
is  the  consideration  that  a  Russian  victory  in  Europe  would 
put  Japan  in  a  hopeless  position  and  that  it  would,  therefore, 
be  Japan's  most  important  task  to  prevent  this  happening  and 
also  the  uncertainty  as  to  whether  and  for  how  long  Russia 
will  hold  firm  against  ceding  air  bases  to  the  Anglo— Americans 
in  her  Pacific  coastal  provinces.  In  the  present  state  of 
affairs,  the  political  possibilities  offered  in  the  East  and 
the  Far  East  acquire  the  greatest  importance  from  the  German 
point  of  view. 

Special  Items: 

I,    Under  date  of  6  Jul.,  Group  North  Fleet  has  submitted 
its  views  on  the  organization  of  the  battlegroup  in  the  Fall 
of  this  year.  It  states  as  follows: 

As  nc  convoys  have  been  detected,  the  battlegroup  has  so  far 
not  gone  into  action.  Nevertheless,  Group  Command  North  Fleet 
Command  believes  that  the  long  break  in  convoy  traffic  between 
England  and  Russia  is  a  result  of  the  battle  group's  presence 
in  northern  Norway,  Due  to  the  heavy  commitment  elsewhere  of 
the  enemy  naval  forces  and  merchant  shipping,  and  with  the 


-202-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

and  with  the  present  comparative  strengths  in  Northern  Norway, 
a  convoy  to  Russia  would  require  considerable  commitment  of 
forces  of  which  the  enemy  would  fill  the  lack  at  other,  at 
present  more  important  places.   The  Group  Command  believes 
that  without  the  battle  group,  the  enemy  would  have  been  much 
more  tempted  to  carry  on  traffic  with  Russia  with  the  much 
smaller  forces  than  required  and  would  probably  have  done  so. 
It  is  to  be  expected  that  this  traffic  will  be  resumed  by  Fall 
at  the  latest,  taking  advantage  of  the  long  nights.  Group  Com- 
mand North  Fleet  Command  is  therefore  of  the  opinion  that  it 
wared  strongly  influence  the  course  of  the  war  at  sea  and  also 
offer  good  prospects  of  success  if  the  surface  forces  provided 
for  combat  operations  in  northern  Norway  were  allowed  to  re- 
main there  beyond  the  autumn.  It  is  therefore  requested  that 
immediate  consideration  be  given  to  the  question  of  how  the 
battle  group  should  be  organized  after  this  Fall  so  that  it 
may  be  able  to  perform  these  missions,  while  allowing  time  for 
repairs.  In  this  regard  the  Group  Command  is  of  the  following 
opinion: 

1,  A  dockyard  period  at  home  for  the  battleship  TIRPITZ  ' 
is  unavoidable.  In  case  of  emergency,  and  not  without  reluctance, 
this  can  perhaps  be  eostponed  until  the  Spring,  though  this 
would  considerably  impair  her  war  readiness.  The  decision  on 
this  matter  must  largely  depend,  in  our  opinion,  on  the  time 

of  year  at  which  the  battleship,  TIRPITZ  can  best  be  spared. 
The  Group  Command  would  prefer  if  the  period  chosen  for  docking 
at  home  were  the  dark  season  so  that  the  battleship  might  be 
ready  for  action  in  the  northern  area  during  the  light  season 
wfcrch  is  more  suitable  for  her  tactical  operation.  During  the 
dark  season,  the  responsibility  for  operations 'against  con- 
voys falls  in  our  opinion,  on  the  light  forces, 

2,  The  withdrawal  of  the  LUETZOW  and  also  the  prob- 
able temporary  withdrawal  of  the  TIRPITZ  would  mean  that  for 
about  six  months  the  SCHARNHORST  alone  would  be  the  mainstay 
of  the  battle  group.   In  these  circumstances,  Group  North  Fleet 
suggests  that  the  cruiser  PRINZ  EUGEN  be  assigned  to  the  battle 
group  to  remain  as  third  ship  of  the  group  also  after  the  re- 
turn of'  TIRPITZ.  Although  lacking  certain  qualities  of  the 
LUETZOW,  the  PRINZ  EUGSN  would  increase  the  total  fighting  value 
of  the  battle  group  and  make  it  a  homogeneous  fighting  formation. 
She  would  also  provide  good  support  for  short  raids  or  attacks 
by  destroyers  against  light  forces.  Although  the  transfer  of 
the  PRINZ  EUGEN  does  not  have  to  be  decided  upon  right  away, 

it  should  be  pointed  out  that  preparations  must  be  started  early 
in  order  to  be  able  to  put  any  sudden  decision  into  effect 


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CONFIDENTIAL 
15  Jul.  1943 

without  delay.  The  withdrawing  of  the  PBIKCE  EUGEN  from  the 
training  formation  and  the  reorganization  of  her  crew  and 
materiel  for  the  new  task  will  take  about  four  months-  At 
the  same  time,  the  cadet-training  function  of  PRINZ  EUGEN  will 
have  to  be  transferred  to  another  vessel  (LUETZGW). 

» 

3'.    In  the  opinion  of  the  Group  Command,  Commanding 
Admiral,  Cruisers  must  always  have  at  least  ten  operational 
destroyers  at. his  disposal.  Assuming  that  about  four  de- 
stroyers are  continually  in  dock,  on  their  way  out  or  back, 
or  temporarily  out  of  action  etc.,  it  would  mean  that  there 
must  be  fourteen  destroyers  in  the  formation  of  Commanding 
Admiral,  Cruisers.  Especially  in  the  dark  season,  it  will 
be  important  to  keep  the  number  of  operational  destroyers  "3 
high  as  possible  because,  apart  from  the  reduced  number  of  big 
ships,  the 'dark  season  is  particularly  favorable  for  destroyer 
operations , 

4.    As  further  developments  cannot  be  foreseen  and  as 
the  intended  increase  in  the  number  of  cadets  for  next  year 
will  in  any  case  make  it  necessary  to  use  GNEI3ENAU  and  the 
HIPPER  as  training  hulks,  the  Group  Command  suggests  that  these 
vessels  be  brought  up  to  a  higher  readiness  status  than  here- 
tofore so  as  be  shorten  the  time  required  to  put  them  into 
full  operational  status  and  make  free  decisions  possible. 

In  any  case,  it  appears  advisable  not  to  break  up  these 
ships  but,- on  the  contrary,  to  repair  them  and  increase 
their  personnel  establishment  and  to  hold  them  in  a 
higher  degree  of  readiness  than  has  so  far  been  custo- 
mary with  ships  placed  out  of  service. 

Naval  Staff  approved  this  statement  in  principle.   However,  ac- 
cording to  the  investigations  of  Naval  Staff,  Quartermaster 
Division,  it  is  not  possible  to  send  the  PRINZ  BUGSN  to  rein- 
force the  battle  group  in  the  autumn  because  the  ship  is  in- 
dispensable at  home  for  cadet  training.  Furthermore  the  matter 
of  fuel  oil  must  be  examined. 

The  question  of  putting  the  GNEISENAU  and  the  HIPPER  into 
service  as  training  hulks  and  improving  their  degree  of  readi- 
ness will  be  further  investigated  by  Quartermaster  Division. 

A  corresponding  order  was  sent  to  Group  forth  Fleet  on  15  Jul. 

II.   For  the  opinion  of  Naval  Staff,  Operations  Division  on 
the  allocation  of  the  17  KK-boats  under  construction  or  re- 
building, and  the  directive  to  Naval  Staff,  Quartermaster 


-3  )4~  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

Division, ' see  Order  l/Skl  I  op  19217/43  Gkdos,  For  copy,  see 
War  Diary,  Part  C,  Vol.  d. 

III.  Naval  Staff,  Submarine  Division  advised  Naval  Staff, 
for  information  of  the  directive  to  Commander  Submarines, 
West  and  to  the  submarine  flotillas  concerning  the  opera- 
tional use  of  G  7  ES  (Zaunkoenig),  As  a  first  allotment  80 
torpedoes  will  be  made  available  at  Brest,  St.  Nazaire,  La 
Pallice  and  Gdynia  respectively  between  1  and  8  Aug.  Four 
torpedoes  are  provided  for  each  boat.  Completion  at  the 
, dockyards  is  to  be  speeded  up  so  that  the  boats  will  be  in 
sailing  readiness  by  11  Aug.  and  the  boats  at  home,  by  8  Aug. 
Two  short  training  courses  will  be  held  at  the  end  of  Jul.  at 
Gdynia  for  commandants,  engineer  officers  and  engineer  mechan- 
ics. Abbreviations  for  Zaunkoenig  -  TV,  for  warhead  -  KE,  for 
warhead  -  pistol  =  P  i  4  with  Torpedo  Firing  Device  5  (TZ  5). 

Situation  on  15  Jul.  1943 

I.  War  in  Foreign  Waters: 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

Naval  Staff  has  informed  Ship  "28"  by  radiogram 
OO46,  of  enemy  merchant  ship  movements  according  to  Radio 
Intelligence, 

No  reports  have  been  received  on  our  own  ships  in  foreign 
waters. . 

II.  Situation  West  Area: 

1.  Enemy  Situation: 

Twenty-eight  planes  were  detected  over  the  outer 
Bay  of  Biscay  up  to  14°W«  One  British  ship  was  located  in 
each  of  the  following  positions:  at  1249  in  BF  1620,  at  1532 
in  BF  1430  and  at  1535  in  BF  1490. 

2,  Own  Situation: 

Atlantic  Coast: 

One  ELM/J-mine  was  cleared  off  St.  Nazaire,  one 
off  Gironde  and  one  off  Brest. 

-205-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

Sth  Destroyer  Flotilla  entered  Lorient  at  1720  after  completing 
exercises  according  to  schedule. 

5th  Torpedo  Beat  Flotilla  entered  Bayonne. 

Torpedo  boat  T  "24",  the  GBEIF  and  the  '.FALKE  left  Brest  at  2000 
in  order  to  bring  in  Wo  submarines  with  reduced  diving  capa- 
city. 

Commander,  8th  Destroyer  Flotilla  has  reported  details  on  the 
torpedo  firing  exercises.  For  copy,  -see  teletype  2340« 

After  refuelling  destroyer  Z  "24"  will- be  kept  at  6  hours 
readiness  for  transfer  to  Bordeaux,  destroyers  Z  "32",  Z  "37" 
at  3  hours  readiness  for  transfer  to  Pauillac, 

Channel  Area: 

Due  to  the  stormy  weather,  the  only  convoys 
carried  out  were  the  "Channel  Islands  traffic.  The  convoy 
route  off  Ostend  was  closed  owing  to  suspected  mines. 

Two  patrol  positions  were  not  taken  up. 

In  regard  to  the  readiness  of  PT  boats,  Group  T.fest  reports 
that,  in  the  Cherbourg  area  five  to  six  boats  will  be  opera- 
tional by  the  end  of  Jul.  and  about  ten  boats  in  August;  in 
the  Holland  area  four  to  six  boats  by  the  end  of  July  and 
about  eleven  boats  in  August,   The  small  number  is  due  to  in- 
creased rearmament  and  current  repairs-  in  preparation  for 
operations  in  the  Fall.  Naval  Group  ".'est  also  advised  Naval 
Staff,  Operations  Division  for  information  of  the  order  post- 
poning the  transfer  of  the  LOTHRIBGEN  to  the  end  of  Aug./ 
beginning  of  Sept, 

III.   North  Sea.  Norway.  Northern  Waters:. 

1.     orth  Sea: 

Four  ELM/J-mines  were  cleared  north  of  Tershelling, 
and  three  south  of  Heligoland.  During  this  sweep,  mine-exploding 
vessel  "10"  was  struck  by  a  mine  in  AN  95&6  and  is  sailing 
under  her  own  power  to  Hamburg. 

Otherwise,  escort  service  and  channel  sweeping  were  carried 
out  according  to  plan. 


-206-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

Naval  Chief  Command,  North  has  warned  naval  forces,  that  the 
southern  section  of  the  VIeswall  declared  area  has  been  ex- 
tended -eastwards.   For  copy,  see  teletype  1926. 

2.    Norway.  Northern  Waters: 

Enemy  Situation: 

Nine  planes  were  detected  in  operation  over  the 
North  Sea  and  one  plane  in  the  area  of  the  Iceland  squadrons. 
Limited  air  activity,  without  attacks,  was  observed "in 
Vrangerf jord,  the  Petsamo  area,  and  the  Bardoe  area* 

Our  air  reconnaissance  produced  no  tactical  results. 

One  fishing  boat "and  one  corvette  were  sighted  in  the  Denmark 
Strait  on  14  Jul. 

According  to  photographs,  there  were  1  auxiliary  minesweeper, 
1  (apparently)  aircraft  recovery  ship  and  7  fishing  smacks  in 
Thorshaven.  Single  fishing  cutters  and  the  two  Swedish  ships 
were  sighted  on  a  westerly  course. 

Own  Situation: 

On  13  Jul.,  eight  Army  demolition  chambers  in  the 
harbor  of  Utsira  were  detonated  by  a  thunder  clap.   Part  of 
the  quay  wall  was  destroyed. 

At  0311  on  14  Jul.,  the  Russian  Battery  "209"  fired  two  rounds 
at  a  combined  operations  landing  boat.  The  Ristiniemi  Battery 
returned  fire  with  one  round. 

Thirty-six  ships  were  escorted  to  the  north  and  39  ships  to 
the  south.  Eighteen  ships  are  held  up  in  the  Arctic  Coast 
and  western  coast  areas  for  lack  of  escort.   The  delay  is 
considerable  in  some  cases. 

Group  North  Fleet  had  reported  on  8   Jul.,  that  the  transfers 
to  the  northern  area  of  the  PRIMZ  EUGEN,  FI&KKM,  and  doetroycro 
"29"  and  "33"  were  inter-dependent.   The  FRA1IKEN  will  probably 
be  ready  for  transfer  in  the  first  week  of  Aug.  and  destroyers 
"29"  and  "33"  at  the  same  time,  after  a  short  period  of  training. 
If  it  were  decided  not  to  transfer  PRIIIZ  EUGEii,  Group  North 
suggested  that  the  destroyers  be  transferred 'alone  and  the  trans- 
fer of  the  FRANKEN  be  postponed  until  autumn. 


-207-  CONFIDENTIAL 


CG31DZNTIAI 
15  Jul.  19i 

in  the  meantime.  Chief,  Naval  Staff  has  decided  that  the 
PRINZ  EUGEH  is  tc  remain  in  the  training  formation  for  the  time 
being,  jrroup  -'rrth  Fleet  has  been  instructed  to  postpone  the 
transfer  of  the  FRANEEM  tc  the  autumn  and  to  move  the  destroyer 
Z  "29"  and  "33"  independently  to  the  northern  area  as  soon  as 
they  are  ready, 

I~*«    S>agerra-:.  Zal-j:  fea  Za~-:r.a :  : ;  ,  3:.l:i:  ; -:  a  : 

1.  Zr.ear.-  Situaticr.: 

Normal  shipping  traffic  v.as  observed  in  Kronstadt 
Bay,  Ten  pontoons  and  one  M-class  submarine  were  also  iden- 
tified. At  2200,  20  vessels  of  unidentified  type  were  sighted 
od   a  westerly  course  east  of  Seiskari«  Fifteen      were 
dropped  on  Tytters  causing  only  slight  materia:     is. 

2,  Z-,,r.   Situation; 

Large  minesweeper  "11"  will  be  sent  to  make  a  gap 
.  the  east  sector  of  t    kagerrak  barrage. 

Between  1520  and  154C,  a  Swedish  flying  boat  flew  around  our 
veral  times  at  low  level,  at  a  distance  of  50  meters, 
taking  photograph  s« 

Due  to  bad  sighting  conditions  in  the  southern  part  of  the 

:ur  mine  sa-e:- ping  plane  probably  flew  over  Swedish  terri- 
tory, Swedish  medium  anti-aircraft  guns  near  Falsterbo  Hew, 
fired  about  10  rounds  a       lane.   Sea-rescue  searches  for 
twc  cf  our  planes  .which  *had  crashed  in  Dantzig  Bay  were  un- 
successful. 

No  important  events  were  reported  from        .3  of  Commander 
aesweepers  Baltic  and  Admiral,  Baltic  Countries, 

Inree  tankers  were  escorted  in  the  easter.a  Baltic  Sea  and  four 
transports,  four  tankers,  four  steamers,      -eather  ship  COBURG 
and  the  mine  transport  ship  RHET"  were  escorted  in  the  irea  of 
aairal,  Defenses  Baltic, 

V# Merchant  Shipping : 


1.  Iroup  South  reports  that  the  Reich  Commissioner  of 

pping,    I        fcy   for   German  I    a    -rar.spcrtatirn  in  the 
Bite  will  C33une  responsibility  far  erganisatxen,   man- 

agener.t^    1  .    anloading  of  all  supply  tonnage  in  the 

:  Sea  as  from  15  Jul0     The  Navy  will  continue  to  be  re- 
sponsible for  the  organization  of  shipping  space  east   of 

-208-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

Sevastopol  and  in  the  Kertch  Straits  and  the  Azov  Sea, 

For  Copy  of  the  relative  report  as  per  l/Skl  21138/43  geh.  see 
War  Diary,  Part  C,  Vol.  XI. 

2.    In  regard  to  the  wishes  expressed  by  the  Reich 
Commissioner  of  Maritime  Shipping  concerning  ship- transfers 
from  western  France  to  the  North  Sea,  Naval  Staff,  Operations 
Division  has  pointed  out  to  the  Reich  Commissioner  that  such 
movements  are  considered  to  involve  great  risk,  particularly  ' 
in  the  case  of  large  ships,  but  that,  under  certain  conditions, 
it  might  be  advisable  to  accept  the  risk  in  view  of  the  air 
threat  to  ships  in  the  harbors  of  western  France  and  the  mili- 
tary disadvantages  of  ship  concentrations  there.   The  transfer 
movements,  which  presumably  could  start  at  the  beginning  of 
October,  would  have  to  be  spread  over  a  long  period  as  they 
are  always  dependent  on  the  fulfilment  of  certain  prerequisites. 
Any  return  transfer  from  the  North  Sea  to  Western  French  ports,  for 
example  to  supplement  the  tonnage  requriements  in  that  area, 
would  be  out  of  the  question  due  to  the  difficulties  involved. 
Finally,  Naval  Staff  pointed  out  that  it  would  be  necessary  to 
take  measures  and  to  conceal  the  plans  from  the  crews  as  the 
transfer  of  every  single  ship  is  a  major  operation, 

VI.  Submarine  Warfare: 

1,  Enemy  Situation; 

A  big  two-funnel  steamer  was  sighted  in  EF  6363  on 
course  120°  at  high  speed, 

2.  Own  Situation: 

A  new  success  has  been  reported  from  the  Indian 
Ocean, 

Submarine  U  "181"  sank  a  steamer  of  2,852  BRT  enroute  fro-  Durban 
to  Aden  in  KF  9l66<, 

Our  submarines  were  repeatedly  attacked  by  planes  in  the  sea 
area  west  of  Spain  and  west  of  the  Canary  Islands.  All  at- 
tacks were  repulsed  and  the  boats  were  not  damaged, 

VII,  Aerial  Warfare: 

1,    British  Isles  and  Vicinity: 


-209-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

The  enemy  continued  his  attacks  on  airfields  in 
northern  and  western  France  with  air  forces  of  medium  strengthc 
During  the^attacks  on  14  Jul.,  altogether  62  of  our  planes  in- 
cluding 49  FW  190s  were  destroyed  on  the  airfields.  These 
serious  losses  are  most  regrettable.  On  15  Jul.,  10  enemy 
plp.nes  were  shot  down  during  the  defense  against  the  attacks. 

During  the  night  of  15  Jul.,  24  enemy  planes  flew  into  Reich 
territory.  Twenty  of  these  flew  across  the  Reich  territory  via 
Friedrichshafen  -  Munich  without  dropping  bombs  and  successfully 
attacked  the  Peugeot  Works  and  Montbeliard.   Besides  these,  a- 
bout  230  planes  were  reported  crossing  western  France  towards 
Italy. 

Eight  of  our  bombers  made  a  nuisance  raid  on  London  during  last 
night. 

2.  Mediterranean  Theater: 

In  the  night  of  14  Jul.,  about  25  enemy  bombers 
attacked  the  town  and  port  of  Naples 0     The  attack  was  repeated 
at  noon  by  strong  forces.  Strong  forces  also  attacked  our  air- 
fields in  the  Foggia  area  during  the  afternoon  and  evening. 
In  the  afternoon,  7  Ju  88   planes  were  destroyed  and  9' damaged* 
In  the  railroad  station  at  Foggia  an  ammunition  train,  a  fuel 
train  with  700,000  liters,  and  a  freight  train  with  all  the 
guns  for  one  8,8   cm  and  one  2  cm  anti-aircraft  batteries  were  • 
completely  destroyed. 

Our  planes  continued  their  reconnaissance  activity  in  the 
Sicilian  area. 

During  the  night  of  14  Jul., 120  bombers 'were  in  operation 
against  ship  targets  in  the  Syracuse  arpa.  Twelve  vessels  for 
a  total  of  53,000  BRT  were  damaged  so' "heavily  that  the  Air 
Force  considers  them  lost.  Fourteen  more  vessels  for  37,000 
BRT,  1  cruiser,  1  light  cruiser  and  2  destroyers  were  damaged 
by  hits. 

3.  Eastern  Area: 

On  14  Jul.,  70  enemy 'planes  wore  reported  to  have 
been  shot  down  on  the  Army  front. 

■ 

yill.  Warfare  in  the  Mediterranean  and  Black  Sea: 
1.    Enemy  landing  in  Sicily: 


_210-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1%3 

The  enemy  pressure  towards  Catania  was  maintained 
with  undiminished  strength.  German  parachutists  were  landed 
on  the  Catania  airfield  without  enemy  opposition.  On  the 
afternoon  of  14  Jul.  the  enemy  opened  a  strong  infantry  and 
tank  attack  on  the  left  flank  of  the  main  German  line.  Our 
forces  were  forced  to  withdraw.  The  greater  part  of  the 
"General  Goering"  tank  division  was  sent  in  to  clear  up  the 
situation  and  relieve  the  left  flank.  All  enemy  attacks  on 
the  new  main  battle  line  were  repulsed.  The  enemy  air  force 
took  part  in  the  land  fighting  with  strong  bomber,  fighter- 
bomber  and  dive  bomber  formations.  Steps  have  been  taken 
to  occupy  the  bridgehead  position  as  ordered. 

Situation  at  Sea: 

In  the  night  of  14  Jul.,  enemy  commando  troops 
were  landed  on  the  coast  north  of  Catania,  In  the  early  morn- 
ing hours,  our  air  reconnaissance  detected  about  100  ships 
off  Avola,  50  vessels  in  the  harbor  and  roads  of  Augusta  and 
50  in  the  harbor  and  roads  of  Syracuse.  At  noon,  south  of 
Catania,  several  enemy  warships  were  sighted  sailing  north j 
they  bombarded  the  coast  south  of  Taormina. 

At  1725,  a  formation  of  1  battleship,  2  heavy  cruisers,  5 
destroyers  and  15  merchantmen  totalling  up  to  20,000  BRT  were 
sailing  west  60  miles  east  of  Syracuse. 

The  locations  of  the  other  battleships  were  not  identified. 

On  14  Jul.,  enemy  air  reconnaissance  erroneously  reported  one 
of  our  convoys,  50  miles  south  of  La  Spezia,  as  two  battle- 
ships. The  strong  enemy  air  reconnaissance  and  air  activity 
in  the  northern  Tyrrhenia  was  probably  due  to  this  false  re- 
port. 

At  0700,  24  freighters,  10  LST,  38  landing  boats  and  9  escort 
boats  were  reported  near  Cape  Passero,  5  freighters  20  miles 
southeast  of  Cape  Passero  and  25  freighters  unloading  12  miles 
southeast  of  Cape  Passero, 

There  were  23  freighters,  1  anti-aircraft  cruiser,  6  destroyers, 
68  landing  boats  and  2  guard  boats  in  Gela  harbor.  There  were 
no  ships  were  in  port  at  Licata. 

At  1520,  there  were  80  warships  south  of  Empedocle  sailing 
west  a 

At  2245,  Messina  was  simultaneously  attacked  by   surface  and  air 
forces. 

-211-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

In  the  enemy  air  attack  on  Messina  on  14  Jul,,  the  harbor 
area  was  heavily  damaged  and  the  steamer  V2NEZIA  arid  several 
auxiliary  vessels  were  sunk.  No  serious  damage  was  caused  by 
the  enemy  air  attack  on  Palermo  during  the  night  of  14  Jul, 
Another  attack  on  the  evening  of  15  Jul,,  put  a  radio  station 
out  of  action. 

At  1300,  4  boats  of  7th  PT  Boat  Flotilla" and  one  boat  of  3rd 
PT  Boat  Flotilla  left  for  night  operations  in  the  Augusta  - 
Syracuse  area.  At  2235,  the  flotilla  reported  unidentified 
stationary  vessels  6  miles  south  of  Messina,  and  engaged  them 
briefly.  These  were  presumably  the  ships  that  bombarded 
Messina. 

Mo  other  reports  have  yet  been  received  from  the  flotilla. 

According  to  Radio  Intelligence,  the  Commander  of  a  British 
formation  reported  contact  with  6  PT  Boats  off  Reg::io  at  2304. 

Naval  Staff  has  issued  the  following  directive  to  German  Naval 
Command,  Italy: 

The  latest  PT  boat  thrusts  have  proved  that  it  is  not  possible 
to  operate  to  the  desired  extent  from  the  Straits  of  Messina 
because  of  enemy  counter-action.  On  the  other  hand,  there  will 
continue  to  be  caluable  PT  boat  targets  in  the  sea  area  off 
the  southeast  coast  of  Sicily  which  can  probably  more  easily 
be  reached  by  starting  from  the  east  and  avoiding  the  enemy 
light  naval  forces  operating  against  the  Straits  of  Messina. 
Moreover,  it  is  important  that,  in  case  the  Straits  of  Messina 
are  closed,  3rd  and  7th  PT  Boat  Flotillas  should  be  available 
in  the  Ionian  Sea  and  the  Greek  area.  It  is  therefore  better 
for  the  PT  boats  to  start  operating  at  once  from  harbors  south 
or  east  of  the  Straits  of  Messina e  Naval  Staff  considers  that 
they  should  be  transferred  to  Crotone  or  Taranto  as  soon  as 
their  next  operation  is  completed „  It  is  realized  that  opera- 
tions will  have  to  be  supended  for  a  brief  period  until  sup- 
plies and  equipment  are  delivered.  Report  plans e 

No  action  reports  have  been  received  from  the  Italian  or  our 
own  submarines.   Submarine  U  "81"  is  to  be  assigned  to  the 
operation  area  south  of  Sicily  between  the  longitudes  of  CN 
3515  and  3147. 

The  railway  ferry  across  the  Straits  of  Messina  was  periodically 
in  service  on  14  Jul.  Our  ferry  traffic  oh  14  and  15  Jul,  was 
normal  in  spite  of  very  strong  air  attacks. 


-212-  CONFIDENTIAL 


. 


CONFIDENTIAL 
15  Jul.  1943 

2.  Enemy  Situation  in  other  parts  of  the  Mediterranean: 

The  number  of  ships  in  Gibraltar  was  substantially 
unchanged.  According  to  an  Italian  r-eport,  11  freighters  and 

4  tankers  from  the  41-ship  convoy  xvhich  entered  Gibraltar  on 
14  Jul.  were  escorted  to  the  Mediterranean. 

The  number  of  ships  in  Bizerta  has  risen  since  14  Jul,  A 
7,000  ton.  steamer  was  sunk  by  Italian  torpedo  planes  during 
the  night  of  14  Jul.  At  1027,  our  air  reconnaissance  reported 

5  freighters  and  3  PT  boats  on  a  westerly  course,  north  of 
Bizertae  At.  1837,  6  merchantmen  and  6  guard  ships  were  reported 
on  an  east-northeasterly  course  10  miles  north  of  Jijelli, 

At  1910,  3 'big  passenger  ships  with  4-5  destroyers  and 
fighter  protection  were  sailing  west,  15  miles  north  of  Tabarca, 

3.  Own  Situation  in  other  parts  of  the  Mediterranean: 

Sea  Transport  Situation: 

The  number  of  planes  shot  down  during  the  attack 
on  the  steamers  AQUITANIA  and  CPT.  LE  DIABAT  has  increased  to 
three.  The  forces  which  were  escorting  the  steamers  that  were 
sunk  entered  Civitavecchia  during  the  morning.  Submarine  chaser 
"2203"  and  motor  minesweeper  R  "178"  are  damaged. 

One  anti-aircraft  corvette,  3  submarine  chasers,  6  motor  mine- 
sweepers and  2  Italian  torpedo  boats  were  operating  on  escort 
service.  Five  steamers  and  3  tugs  were  escorted  between  Italy, 
Corsica  and  Sardinia.  No  reports  have  been  received  on  traf- 
fic with  Sicily. 

4.  Area  Naval  Group,  South: 

Aegean: 

Shortly  after  midnight,  an  enemy  submarine  was 
sighted  off  Castro.n  harbor.  Submarine  hunting  by  Arado  planes 
produced  no  results. 

Six  planes  were  reported  to  have  flown  into 'the  western 
Peloponnese  apparently  to  supply  insurgents. 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report. 

-213-      .         CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

Own  Situation: 

1st  and  11th  PT  Boat  Flotillas  Dade  no  contact 
with  the  enemy  during  operations  on  the  night  of  14  Jul,  The 
PT  Boat  Flotilla  in  the  reconnaissance  line  east  of  Theodosia 
was  attacked  by  21  bombers  at  2055  and  2122  on  14  Jul.  Nc 
damage  was  sustained. 

Owing  to  bad  weather  and  the  phase  of  the  moon,  PT  boat  opera- 
tions for  the  night  of  15  Jul.  were  cancelled. 

At  2200  on  14  Jula .  the  convoy  Theodosia  -  Yalta "was  unsuc- 
cessfully attacked  with  bombs  southeast  of  Sudak0 

Five  AT-mines  were  again  cleared  in  the  southeastern  part  of 
the  Kertch  Straits 

Operations  by  minesweeping  planes  over  the  Danube  estuary  pro- 
duced no  results „ 

Supply  and  ferry  traffic,  as  well  as  the  Kertch-convoys,  were 
carried  out  according  to'  plan  and  without  incident. 

Special  Items: 

At  the  request  of  Naval  Staff,  Group  South  has  submitted  a  list 
of  the  successes  of  our  naval  forces  in  the  Black  Sea  since  12 
Jun.  1941.  For  copy  of  the  report  as  per  l/Skl  21181/43  geh* 
see  War  Diary,  Part  C,  Vol.  XIV  a. 

IX.   Situation  in  East  Asia: 

Naval  attache  Tokyo  reports:  In  the  night  of  12  Jul., 
an  encounter  took  place  between  a  Japanese  formation  of  several 
light  cruisers  and  4  destroyers  and  a  USA  formation  off  Colon- 
bangara.  Two  enemy  cruisers  were  certainly  sunk  by  torpedoes 
and  gun  fire,  and  2  heavily  damaged,  one  of  which  apparently 
sank  later.  It  was  said  that  on  the  Japanese  side,  1  cruiser 
of  5500  tons,  which  was  put  out  of  action  by  gunfire,  must  be 
considered  lost0 

After  the  battle  on- 6  Jul.,  prisoners  from  the  U.S.  cruisers 
HELENA  and  SANTA  FE,  and  from  the  destroyer  STRONG  were  picked 
up.  This  appears  to  confirm  the  sinking  of  two  cruisers  as 
reported  by  the  Japanese.  Japanese  destroyers  have  taken  sup- 
plies and  reinforcements  to  ?«junda  where  there  are  10,000  Japanese 
troops  under  Navy  command;  there  are  only  small  ^rmy  contingents. 


-214-  CONFIDENTIAL 


CONFIDENTIAL 
15  Jul.  1943 

The  strength  of  the  invading  USA  troops  is  estimated  at  5,000 
men.  The  enemy  has  the  air  superiority. 

The  Japanese  estimate  the  strength  of  the  Soviets  in  the  Far 
East  as  follows: 

Army:  750,000  men,  1,000  planes  of  which  100  are  long- 
range  bombers,  1,000  tanks. 

Navy:  1  large  cruiser,  10  destroyers,  110  submarines,  2 
submarine  parent  ships,  6  torpedo  boats,  5  mine-  ' 
layers,  150  planes  including  30 "long-range  bombers, 
and  45,000  men  in  coast  defense* 

The  Japanese  Naval  Staff  has  closed  the  Lombok  Strait  presumably 
because  of  submarine  danger « 


16  Jul„  1943 

Items  of  Political  Importance: 

No  reports  of  naval  interest  have  been  rccieved. 

Conference  on  the  Situation  with  Chief.  Naval  Staff: 

!«,    Chief.  Naval  Staff,  Quartermaster  Division: 

a.  The  new  2  cm  ammunition  with  increased  explosive 
charge  has  given  extremely  good  results,,  Instead  of  the  1.5 
million  cartridges  requested  of  Armed  Forces  High  Command,  the 
Navy  is  to  get  only  1  million  and  that  at  the  expense  of  the 
Air  Force.  Discussions  are  under  way  with  the  Air  Force  in 
regard  to  delivery  by  installments.  Chief  of  Staff,  Naval 
Staff  will  settle  the  matter  with  Chief  of  the  General  Staff 
of  the  Air  Force, 

b.  According  to  our  figures  on  the  amount  of  fuel  oil 
delivered  to  Italy,  38,000  tons  of  Roumanian  deliveries  cannot 
be  traced  in  Italy,,  It  is  feared  that  these  supplies  have  some- 
how been  set  aside  but  in  any  case  they  have  not  yet  reached 
the  Italian  Navy, 

Within  a  highly  restricted  circle: 

II »   Chief.  Naval  Staff,  Operations  Division : 


-215-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

The  Japanese  Liaison' Officer  reported  on  10  Jul,,  that 
the  Japanese  Naval  Attache,  Berlin  had  received  advice  from 
Tokyo  that  the  Japanese  Navy  regrets  that  it  is  unable  to 
furnish  any  transport  submarines  within  a  reasonable  period. 
The  Japanese  Navy  will  not  be  in  a  position  to  assign  any 
boats  to  the "traffic  to  Germany  until  some  new  ones  are  placed 
into  service,,  From  further  discussion  with  the  Liaison  Officer 
it  was  understood  that  the  Japanese  Naval  Attache  was  dissatis- 
fied with  this  decision  and  has  again  called  Tokyo's  attention 
to  the  urgency  of  the  problem  and  hopes  to  get  an  affirmative 
answer  after  all,,  Naval  Staff  is  considering  whether  the 
Japanese  offer  to  exchange  a  blockade  runner  for  a  transport 
submarine  or  cruiser  would  be  advantageous.  Such  an  exchange 
could,  of  course,,  only  be  considered  if  it  x^ould  serve  to  effect 
an  early  increase- \5ji  the  submarine  rubber  shipments,,  It  is 
planned  to  ask  Naval  Attache,  Tokyo  for  his ' opinion  on  the 
matter.  Chief  of  Naval  Staff  has  concurred, 

III,  Naval  Staff,  Quartermaster  Genera]-  reported  that' two 
batteries  have  new  been  detached  by  Commanding  General.,  ^rmed 
Forces  South  from  the  "Alarich"  and  ''Gisela'1  allotments  for  the 
coastal  reinforcement  of  Southern  Italy,  One  is  a  15  cm  battery 
of  4  guns  with  crew  and  the  other  a  10,5  cm  battery ,also- with 

4  guns  and  crew,  ..  .-  .    -  . 

IV,  Chief j  Naval  Staff  again,  referred  to  the  suggestion  of 
Naval  Staff,  Operations  Division  in  regard  to  strengthening  - 
German  influence  in  the  command,  of  the  Italian  "Armed  Forces.0 
Chief,  Naval  Staff  supported  the  view  that  defense  could  best 
be  carried  out'ori  the  coast  and  that,  the  cooperation  of  Italian 
troops  was  indispensable-,  in  view  of  the  extent,  of  the  coast,  .. 
Our  position  in  the  Italian  Peninsula  must  be  held  as  it  is  of 
decisive  importance,  also  for  the  maintainance  of  our  position 
in  the  Balkans*'  Chief ^  Naval  Staff  has  decided  to  report  this 
opinion  to  the  Fuehrer* 

Subsequently,  the  discussion  of  the  question  of  a  change  in 
Japans  attitude  towards  Russia  was  resumed.  Chief,  Naval  Staff 
considers  that  the  development  of  the  situation  undoubtedly 
calls  for  modification  of  previously  held  opinions.,  The  ques- 
tion is  whether  Japan  is  strong  enough  to  make  an  effective 
attack  on  the  Russians  without  unduly  weakening  her  position 
in  the  southern  area.   Bureau  of  Naval  Armament  is  to  investi- 
fate  how  much  transport  tonnage  would  have  to  be  withdrawn  from 
the  southern  area  for  an  operation  in  Manchukuo,  Of  the  Russian 
naval  forces,  only  the  110  submarines  need  be  considered.  Another 
problem  is  the  question  of  timing.  According  to  information 


-216-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

from  Naval  Attache,  Tokyo,  an  operation  of  this  kind  in  the 
north  could  not  be  contemplated  before  the  beginning  of  the 
winter*  Chief,  Naval  Staff  plans  to  discuss  this  subject  also 
with  the  Fuehrer  when  occasion  arises,, 

V.    Naval  Liaison  Officer  attached  to  High  Command,  Army  has 
reported,  by  letter,  to  Chief  of  Staff,  Naval  Staff  on  the 
status  of  operation  "Citadelle".  North  of  Bjelgorod  the  enemy 
has  been  badly  smashed  and  has  suffered  serious  losses  in  tanks 
but  it  will  not  be  possible  to  advance  further.  The  attack 
south  of  Orel  on  the  other  hand^  was  brought  to  a  standstill 
in  a  strongly  fortified  mountain  area  and  has  turned  into  a 
serious  defense  battle  during  which  the  enemy  has  succeeded  in 
making  several  strong  penetrations  and  even  in  breaking  through 
our  old  main  line  of' defense,,  Our  losses  have  been  heavy  and 
amounted  to  about  30,000  men  during  the  first  3  days.  Tank 
losses  of  tanks  are  not  too  heavy. 

Naval  Liaison  Officer  attached  to  High  Command,  Army  further 
suggested  that  a  conference  of  the  Chiefs  of  the  General  Staffs 
of  the  three  services  be  held  for  the  purpose  making  as  accurate 
an  assessment'  as  possible  of  the  enemy  situation  in  relation  to 
further  developments  in  the  Mediterranean.  'On  the  basis  of  this 
conference,  the  proper  distribution  of  land,  air  and  sea  forces 
in  the  southern  and  western  areas  could  be  decided  and  the  re- 
percussions on  the  eastern  front  established.  The  matter  of  a 
suitable  command  organization  in  the  south  would  also  have  to 
be  re-examined.  The  letter  as  per  l/Skl" 2039/43  Gkdos,  Chefs, 
is  attached  to  War  Diary,  Part  C,  Vol,  a. 

Chief,  Naval  Staff  commented  that  the  result  of  his  conference 
with  the  Fuehrer  must  first  be  awaited.  Rear  admiral  Voss  was 
expected  in  Berlin  this  evening  to  report  to  Chief,  Naval  Staff. 
Chief,  Naval  Staff  would  go  to  Fuehrer  Headquarters  on  the 
morning  of  17  Jul. 

Special  Items; 

I.    By  order  of  Naval  Staff,  Quartermaster  Division,  Supply 
and  Fuel  Branch,  dated  14  Jul,,  1st  and  2nd  Transport  Flotil- 
las (Tr.Fl.)  will  be  established  as  from  1  Aug,  The  flotillas 
will "be  assigned  to  sea  transport  duties  in  the  Mediterranean 
area.  The  flotillas  will  be  formed  from  vessels  of  the  barge 
program,  with  militarized  crews,  assembled  in  groups  of  20 
vessels  each  which  will  be  under  the  operational  and  adminis- 
trative (detached)  command  of  2nd  Landing  Division  (Chief, 
Supply  and  Transport  Italy),  Commander  PT  Boats  will  be  in 
command  up  to  time  of  detachment. 


-217-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

At  the  request  of  Commander,  PT  Boats,  Naval  Staff,  Quarter- 
master Division,  Organization  &  Mobilization  Branch  has  es- 
tablished 1st  PT  Boat  Force,  effective  immediately,  which 
will  be  under  the  operational  and  administrative  (detached)'  .'• 
authority  of  German  Naval  Command,  Italy e  Commander  PT  Boats 
will  be  in  command  up  to  the  time  of  detachment.  3rd  and  7th 
PT  Boat  Flotillas  and  their  bases  will  be  subordinated  thereto „ 

This  measure,  which  was  strongly  advocated  by  Naval  Staff,  Op- 
erations Division,  meets  an  urgent  need  arising  from  the  de- 
terioration of  the  Mediterranean  Situation,  as,  with  the  in- 
creasingly difficult  operational  conditions,  the  offensive 
power  of  the  PT  boats  can  be  fully  exploited  only  if  all  factors 
are  taken  into  consideration  and  handled  by  an  authority  in  close 
cooperation  with  the  operational  commands  and  by  the  quickest 
means  of  communication,!,'  Personnel  requirements  have  been  satis- 
fied by  the  appointment  of  the  former  Chief,  Operations  Branch 
of  Commander  PT  Boats^ 

II.   On  the  basis' of  Admiral  Weichold's  report  on  his  trip  to  * 
the  Southeast  area,  and  a  simultaneous  request  from  Group  South, 
a  discussion  was  held  on  the  question  of  constructing  minesweepers 
in  the  Southeast  areae  Naval  Staff,  Operations  Division  has 
instructed  Quartermaster  Division  to  build  first,  one  minesweeper 
flotilla  of  eight  boats,  as  the  available  facilities  perait,  and 
then  to  continue  with  the  construction  of  another  flotilla  of 
the  same  strength  plus  four  boats  per  year  as  replacements. 
Construction  must  be  comprised  within  the  1943  naval  building 
program.  This  increase  in  minesweeper  construction  must  in 
no  circumstances  lead  to  delay  in  the  new  construction  planned 
at  home. 

IIIo  En6my  Situation  Report  No.  13/43  of  1  Jul,  by  Naval  Staff 
Naval  Intelligence  Division  correotly  indicated  the  main  center 
of  the  enemy's  planned  offensive  in  the  Mediterranean  and  reiter- 
ated the  previously  held  assumption  that  two  separate  major 
operations  were  planned  to  start  simultaneously  in  the  Western 
and  Eastern  Mediterranean  presumably  against  Sardinia  (and 
Corsica?)  and  the  Peloponncse  with  contemporaneous  feint  op- 
erations against  Sicily  and  the  Dodecanese.  The  subsequent 
landing 'in  Sicily  has  not  confirmed  that  assumption  in  all 
details,, 

Enemy  trans-Atlantic  convoys,  in  both  directions, "during  Jun. 
1943,  conprised  44  convoys  with  about  1,190  ships.  For  copy 
as  per  l/Skl  19180/43  Gkdos.  see  War  Diary,  file  Enemy  Situa- 
tion Reports  by  Naval  Staff,  Naval  Intelligence  Division. 


-218-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

Naval  Staff ,  Naval  Intelligence  Division  also  issued  a  report 
on  1  Jul,  on  the  distribution  of  the  British  Fleet  as  at  the 
end  of' Jun.  For  copy  as  per  l/Skl  191B1  gkdos.  see  War  Diary- 
Part  D,  Vol.  "Material  on  the  Enemy  Situation," 

A  report  has  also  been  received  from  Naval  Staff,  Naval  In- 
telligence on  the  use  of  rafts  and  floating  piers  for  landing 
troops,  vehicles,  and  materials  by  the  British  Navy0'  For 
copy  as  per  l/Skl  21315/43  gehe  see  War  Diary  Part  D,  Vol. 
"Foreign  Navies,  Evaluation  of  Inf ormation*" 

Situation  on  16  Jul«  1943 

I.  War  in  Foreign  Waters : 

1.  Enemy  Situation: 

Belconnen  issued  an  anti-submarine  warning  for  15 
Jul.  in  position  3530  south  151°  East, 

2.  Own  Situation: 

The  CHARLOTTE  SCHLIEMANN  arrived  in  Djakarta  on 

13  Jule 

Naval  Staff  advised- Ship- M2g"  by  radiogram  2130,  of  the  above 
anti-submarine  warning  and  in  radiogram  1131,  concluded  the  re- 
port on  political  relations  between  England  and  America,  The 
report  ended  as  follows: 

1,  ■   America  will  make  every   effort  to  regain  the 
Burma  Road  in  the  autumn,  and  will  not  agree  to  a  decisive 
large-scale  invasion  in  Europe  which  would  tie  down  the  avail- 
able Allied  forces.  However,  small-scale  landing  operations 

in  Europe  can  soon  be  expected,         -  '"., 

2,  The-  decisive  invasion-  will  be  made  in  such 
a  way  that  Europe  can,  at  the  same  time,  be  protected  against 
Russia.  The  main  offensive  will  therefore  come  via  the  Balkans, 
It  may  be  supplemented  by  an  operation  in  northern  Norway  or 
Finland, 

II,  Situation  West  Area: 

1«    Enemy  Situation: 

35  pLanes  were  detected  over  the  Bay  of  Biscay. 
One  British  vessel  was  located  in  AM  01  east  of  Rockall  Bank 
at  1831. 

-219-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

Naval  Staff,  Submarine  Division,  Commanding  Admiral  Submarines 
has  informed  the  German  Liaison  Officer  attached  to  the  Ital- 
ian Commanding  Admiral,  Submarines  on  the  enemy  situation  in 
the  Bay  of  Biscay.  The  report  states  that  there  are  2-3 
submarine  chaser  groups  of  2  -  3  vessels  each  and  at  times  1- 
2  destroyers  with  1-2  corvettes  or  trawlers  in  constant 
operation  within  a  distance  of  about  150  miles  around  Cape 
Finisterre.  North  of  this  area  isolated  incoming  or  outgoing 
groups  appear  from  time  to  time.   Besides  this,  fast,  strongly 
armed  planes  may  be  expected  in  this  area.  Submarines  have 
again  recently  put  in  an  appearance  hard  under  the  coast.   In 
view  of  this  situation,  Italian  and  German  submarines  have  been 
recommended  to  hug  the  Spanish  coast*. 

According  to  an  Intelligence  Report  of  15  Jul.  received  via 
Portugal  from  a  particularly  reliable  source,  the  suspension 
of  leave  in  the  Services,  travel* restrictions' and  the  closing 
of  entire  areas  on  the  south  coast  of  England,  requisition  of 
all  motor  cars  in  south  and  southwest  England  not  previously 
seized,  and  the  establishment  of  new  hospitals  all  go  to  indi- 
cate that  a  large-scale  operation  from  that  area  is  imminent. 
No  assembling  of  transport  ships  has  been  observed.  Landing 
boats  are  available  there  only  in  small  numbers.  However,  new 
landing  boats,  presumably  of  American  origin,  are  being  brought 
in,  and  destroyers  and  small  vessels  are  beinfi  transferred  from 
the  north  to  the  south  coast,  VJhether  all  these  measures  are 
in  connection  with  a  new  operation  or  for  supplying  the  Medi- 
terranean cannot  be  ascertained. 

2.    Own  Situation: 

Atlantic  Coast: 


La  Pallice, 


Eight  ELM/ J  mines  were  sxrept  off  the  Gircnde  and 


Destroyers  Z  "24M  and  "32"  moved  from  Royan  to  Bordeaux  and 
destroyer  Z  "37"  moved  to  Pauillac,  Torpedo  boat  T  "24" 
"Falke"  and  "Greif"  carried  out  submarine  rescue  for  two  boats  , 
and  returned  to  Brest. 

By  order  of  Chief,  Naval  Staff,  the  submarine  group  U  "117", 
"459"  and  "4ol"  will  be  escorted  by  destroyers  and  the  group 
of  submarine  U  "462"  and  two  Italian  Aquila  boats,  by  torpedo 
boats  as  far  westwards  as  possible.  Air  escort  to  be  provided, 
The  submarines  are  to  proceed  separately  after  leaving  the 
escort. 


-220-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

Channel  Coast: 

Due  to  bad  weather,  the  patrol  positions  were  not 
taken  up.  There  was  no  convoy  traffic.  Only  the  Channel  Island 
traffic  and  some  channel  sweeps  were  carried  out.  Nothing  else 
has  been  reported, 

IIIo  North  Sea,  Norway,  Northern  Waters: 

North  Sea: 

At  0320,  the  harbor  protection  group' at  Ymuiden  had  a 
brief  engagement  with  three  enemy  PT  boats,  6  miles  southeast 
of  Ymuiden,  One  enemy  vessel  was  probably  sunk. 

At  0657,  convoy  450  was  unsuccessfully  attacked  by  eight  enemy 
planes „ 

Norway. 'Northern  Waters: 

1.  Enemy  Situation: 

Thirty  planes  were  detected  operating  over  the 
North  Sea  but  no  planes  were  observed  in  the  area  of  the  Ice- 
land squadrons.   Reconnaissance  was  pbobably  flown  during 
this  time  of  the  Shetland  Narrows  area.  Our  own  air  recon- 
naissance produced  no  tactical  results. 

2.  Own  Situation} 

On  the  afternoon  of  15  Jul.,  four  patrol  boats  and 
one  plane  carried  out  a  submarine  hunt  near  Sognecksen  after 
previous  acoustic  location.  Convoy  traffic  in  the  area  of 
suspected  submarines  is  procedure  with  reinforced  protection. 
At  0200  on  16  Jul.  an  enemy  plane  crashed  west  of  Kvittingsoey. 
The  Canadian  crew  was  picked  up  by  a  minesweeper. 

Forty-five  ships  were  escorted  to  the  north  and  44  ships  to 
the  south. 

Eight  ships  were  held  up  owing  to  lack  of  escort  vessels. 

Commander,  Submarines  Norway  has  reported  the  plan  for  the  sub- 
marine commitment  in  Northern  Waters  in  connection  with  the 
forthcoming  operations:  A  total  of  sjjc  boats  will  perform  the 
minelaying  operations.  Action  date  will  be  the  last  10  days 
in  Jul*  to  the  beginning  of  August.  The  following  code  words 
have  been  set  for  the  operation:   Belushya  -  Aster;  Jugor  Strait  ■ 
Nelke;  Jerrnak  Bank  -  Gladoilej  Petchora  -  Tulpe;  Sengeiski  - 
Veilchen  and  Rose. 

-221-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.  1943 

Submarine  U  "601"  will  leave  as  the  first  boat  for  operation 

Aster  and  will  subsequently  be  available  for  refuelling  B7  138 
after  replenishing  her  torpedo  supply. 

Three  boats  are  provided  for  the  operation  in  the  Kara  Sea. 
They  will  take  up  the  positions  as  ordered  on  26  and  29  Jul. 
■and  2  Aug.  respectively.  Submarine  U  "255"  will  have  to  ar- 
rive on  25  Jul.  at  a  position  at  the  nor thorn  end  of  Novaya 
Semlya,  and  submarine  U  "601"  en  30  Jul.,  in  order  to  refuel 
BV  1380 

The  first  meteorological  apparatus  was  taken  to  Bear  Island  by 
submarine  U  "629"  on  9  Jul.  On  about  20  Jul,,  submarine  U  "703" 
will  lay  a  weather  buoy,   One  or  2  of  the  submarines  at  Bear 
Island  will  always  be  ready  for  further  tasks.  Commander  Sub- 
marines Norway  reckons  with  seven  boats  at  a  time  for  the  posi- 
tions in  the  Bear  Island/Spitzbergen  area.  One  of  these  boats 
will  also  make  a  reconnaissance  of  the  west  coast  of  Spitzbergen 
on  about  16  Jul.,  as  a  special  assignment. 

Group  North  Fleet  has  reported  that  the  codewords  for  the  re- 
peat of  operation  "Wunderland"  are  "Husar",  "Suedwind"  and 
"Dudelsack", 

Naval  Staff  Hydrographic  and  Meteorological  Division  has 
issued  a  directive  to  Group  North  Fleet  on  the  establishment 
of  weather  observation  stations  in  the  northern  area0  Four 
separate  opera tions  are  planned  with  the  code  words  "Bassgeiger", 
"Einsiedler",  "Kreuzritter"  and  "Schatzgraeber",  Operation 
"Bassgeiger"  provides  for  one  winter  station  and  two  alternative 
stations  in  Greenland.  Weather  ship  3  "C,  J.  Busch"  will  serve 
as  transport.  Operations  "Einsiedler"  and  "Kreuzritter"  will 
be  carried  out  by  the  weather  ship  "6"  "Kaedinger."  Operation 
"Einsiedler"  is  to  consist  of  a  thrust  as  far  to  the  west  as 
possible  along  the  Greenland  coast,   "Kreuzritter"  comprises 
the  ^establishment  of  permanent  stations  in  the  northern  Spitz- 
bergen, Details  of  operation  "3chatzgraeberM  will-.-'be  issued 
later.  These  operations  should,  if  possible,  include  the  es- 
tablishment of  a  weather  station  in  Alexandra-Land  north  of 
Spitzbergen  or  on  Victoria  Island, 

IV.   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea: 

1,    Enemy  Situation; 

There  was  some  artillery  activity  in  Kronstadt  Bay 
during  the  day  and  great  air  activity.   Shipping  traffic  between 


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CONFIDENTIAL 
16  Jul.  1943 

Kronstadt  and  Leningrad  was  intense  particularly  during  the 
night*  -According  to  an  aerial  photograph  on  the  evening  of 

15  Jul;,  there  were  45  guard  ships,  PT  boats,  and  motor  boats, 
3  tjigs,  4  barges  and  1  small  freighter  at  Lavensari.  Three 
PT  boats  were  cruising  east  of  Seiskarii  In  the  evening  of 

16  Jul.,  several  planes  attacked  Tyters. 

2.    Own  Situation: 

.-■Twenty  vessels  and  2  minesweeping  planes  were  on 
channel  clearance  duties  in  the  area  of  Commanding  Admiral, 
Defenses,  Baltic,  One  ELM/J  mine  was  cleared  9  miles  south-  ' 
east  of  Skagen.  Three  croop  transports,  1  tanker,  2  steamers, 
the  mine  transport  "Rhein",  and  1  new  mine  exploding  vessel 
were  escorted. 

The  administration  hut  of  the  unoccupied  anti-aircraft  position 
at  Gammelby  was  set  on  fire  by  sabotage  and  completely  destroyed. 

Four  tankers  and  3  leave  transports  were  escorted  in  the-  - 
eastern  Baltic  Sea, 

Minesweeping  in  the  Joben  Strait  was  discontinued  because  of 
bad  weather.  The  anti-submarine  net  and  barrage  patrols  in 
the  Gulf  of  Finland  were  carried  out  according  to  plan  by  34 
vessels.  An  oil  trace  near  Vaindlo'was  attacked  with  depth 
charges,  A  first-aid  kit  was  found. 

After  reconditioning  the  foundations',  the  "Prinz  Heinrich" 
battery  reopened  fire  on  the  dockyards  in  Kronstadt  Bay  and 
observed  3  hits  in  buildings. 

V«    Submarine  Warfare: 

1»    Enemy  Situation: 

Four  more  submarines  must  be  presumed  lost  in  the 
Bay  of  Biscay, 

Five  submarines  are  to  be  combined  into  a  group  in  the  Freetown 
area  in  order  to  attack  the  regular  convoy  traffic  up  to  Logos. 
Three  other  boats  will  remain  in  independent  positions  off  Free- 
town. 

New  reports  have  been  received  of  successes  in  the  Indian  Ocean. 
Three  steamers  and  one  tanker  for  a  total  of  25,000  BRT  were 
sunk. 


-223-  CONFIDENTIAL 


CONFIDENTIAL 
16  Jul.-  1943 

Besides,  one  steamer  of  4,558  BRT  was  sunk  520  miles  east  of 
Rio  de  Janeiro. 

With  the  delivery  of  the  first  Zaunkoenig  torpedoes  to  the 
flotillas  in  the  West  Area,  the  equipment  of  the  boats  with 
quadruple  and  twin  mount  anti-aircraft  guns  and  the  armoring 
of  the  conning  towers, the  measures  necessary  for  resumption 
of  the  campaign  against  convoys  in  the  North  Atlantic  are  ., 
barely  completed."  Naval  Staff  Submarine  Division  intends  to 
reopen  these  operations  in  the  period  of  new  moon  at  the  end 
of  August/beginning  of  September, 

VI.   Aerial  Warfare: 

British  Isles-  and  Vicinity: 

During  the  day,  only  minor  enemy  air  activity  v/as  re- 
ported from- the  occupied  western  territories.   Traffic  instal- 
lations were  attacked  in  the  Abbeville  area.  Three  Spitfires 
were  shot  down.  In  the  night  of  16  Jul.,  about  30  planes  were 
reported  flying  over  to  and  from  Italy 0  Besides  this,  108  * 
planes  were  observed  flying  into  German" controlled  territory,  ' 
27  of  which  were  flying  towards  Germany.  In  southwest  Germany, 
20  planes  got  as  far  as  Munich  and  dropped  four  high  explosive 
bombs  on  a  railway  station. 

V 

Xediterranean  Area: 

The  enemy  continued  the  attack  on  our  airfields  with 
strong  forces 3  Twenty-five  of  our  planes  were  destroyed  and 
34  damaged.  At  noon,  strong  forces  attacked  San  Giovanni. 
Two  of  the  attacking  planes  were  shot  down  by  anti-aircraft 
guns.  Late  in  the  evening,  an  air  attack  was  made  on  Catania 
where  8  enemy  planes  were  shot  down,  and  leaflets  containing 
an  appeal  from  Roosevelt  and  Churchill  to  the  Italian  people 
to  renounce  Fascism  were  dropped,  over  Rome. 

Planes  flying  from  England  to  northern  Italy  dropped  a  few 
bombs  near  Milan  and  La  Spezia,  No  military  damage  was  done. 

Only  a  few  air  reconnaissance  reports  have  so  far  been  received 
from  our  planes. 

Eastern  Front: 

On  15  Jul.,  49  enemy  planes  were  shot  down  on  the  Army 
front. 

The  5th  Air  Force  reported  a  raid  by  8  Blenheims  which  sank 

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CONFIDENTIAL 
16  Jul.  1943 

one  of  our  submarine  chasers  near  Herdla  at  0430.  No  report 
on  this  has  yet  been  received  from  Navy  sources. 

VII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

Enemy  Landing  In  Sicily: 

Situation  on  land:  On  the  left  flank  of  the  "Hermann 
Goering"  tank  division  the  enemy  continued  to  attack  with 
strong  infantry  and  tank  forces  supported  by  flanking  fire 
from  heavy  nival  guns.  After  a  fluctuating  battle.  Group 
ochmalz  had  tc  withdraw  behind  the  Lunga  section.  Strong 
enemy  parachute  unit  3  again  landed  in  the  area  northwest  of 
Catania  -  Patemo  -  Bianoabilla.  Commanding  General  Armed 
Forces'  South  expects  the  enemy  to  launch  a  decisive  attack  on 
the  left  flank  in  order  to  break  through  towards  liessina. 

Situation  at  sea:  Five  boats  of  the  7th  PT  Boat  Flotil- 
la returned  from  operations  in  the  early  morning  and  put  in 
tt  Paradiso.   From  2240  -  2307  on  the  preceding  evening,  the 
formation  had  an  artillery  duel  with  4  motor  gun-bc£"fcs,  20 
miles  south  of  Messina  during  x^hich  two  motor  gun-boats  were 
set  on  fire  by   shells  and  1  was  probably  sunk.  At  2330,  the 
flotilla  made  a  detour  to  the  east  to  avoid  other  motor  gun- 
boats and  advanced  in  the  reconnaissance  section  up  to  5  miles 
northeast  of  Syracuse.  A  combined  torpedo  attack  on  a  tanker 
or  LST  with  two  escort  vessels  on  a  westerly  course  was  un- 
successful due  to  a  phosphorescent  bubble  track.  No  ships 
were  sighted  off  Syracuse  and  Augusta.  At  0348  the  flotilla 
turned  back  from  8  miles  southeast  of  Augusta  making  a  wide 
detour  to  the  east.   Between  0517  <ind  0600,  the  flotilla  was 
heavily  engaged  by  a  superior  force  of  8  motor  gun-boats  and 
PT  boats,  PT  bo^"t  0-1^6   was  unable  to  move  for  some  time  be- 
cause all  ^r  engines  went  out  of  action.  Hits  on  the  enemy 
were  ~>D served.  Only  one  man  was  wounded  on  our  side.   Four 
voats  are  out  of  action  because  of  hits  and  engine  trouble,, 
At  1930,  the  boats  put  in  to  Salerno.  German  Naval  Command 
Italy  plans  no  further  operations  until  the  big  boats  of  3rd 
PT  Boat  Flotilla  are  ready  for  action  and  3rd  PT  Boat  Flo- 
tilla has  moved  to-  Crotone  so  as  to  avoid  the  motor  gun-boat 
line.  Furthermore,  German  Naval  Command,  Italy  reports  that 
the  boats  of  7th  PT  Boat  Flotilla  of  type-  S-151  are  very  un- 
reliable and,  in  spite  of  the  new  engines,  can  make  only  28 
knots  maximum  speed,  and  barely  24  knots,  cruising  speed.  Ger- 
man Naval  Command  suggests  that  the  7th  PT  Boat  Flotilla  be 
left  in  the  western  area  of  Italy  and  Sardinia  -  Corsica, 


-225-  CONFIDENTIAL 


c::":::i.::l-.i- 
16  Jul.  1943 

In  the  afternoon,  3  cruisers  and  2  destroyers  were  sighted  ■ 
off  Catania  and  further  landings  were  observed  on  the  east 
coast.   T  lenty  freighters,  40  landing  boats,  6  destroyers, 
11  FT  beats  and  smal  1  er  .vessels  were  reported  near  Cape. 
Bassero.  At  2227,  our  air  reconnaissance  reported  several 
unidentified  units  20  miles  east  of  Crotone. 

In  the  night  of  15  Jul.,  an  Italian  plane  reported  a  torpedo 
hit  on  a  large  transport  or  aircraft  carrier  near  Cape  Passero, 

Naval  Staff,  iiaval  Intelligence  Division  presented  maps  of 
the  transport  routes  used  by  t.      f   forces  operating  against 
Sicily.-  TWhereas  all  the  U.  S.  forces  started  from  northern 
Tunisia,  only  part  of  the  British  divisions  came  from  that 
area  while  one  division  cane  from  the  Bougie  area,  one  from 
Philippeville  and  one  from  Egypt.  Naval  Staf:  .    — .1  Intel- 
ligence Division  also  showed  a  map  giving  the  disposition  of 
the  landing  boats  and  freighter  tonnage  in  the  I-Iediterranean. 
For  copy  as  per  l/Skl  21121  and  21221/43  geh  see  ".Jar  Diary 
rt  D,  'Material  on  the  Enemy  Situation." 

2.    Zr.emy  Situation  in  Other  Parts  of  th.  Aeliterrancan: 

At  1300,  a  cruiser  of  the  Dido-class  entered  Gib- 
raltar from  the  Atlantic  and  a  convoy  of  12  big  transports, 
some  with  troops,  entered  from  the  Atlantic  at  1930,  escorted 
by  six  destroyers  and  two  corvettes. 

: rrding  to  our  air  reconnaissance,  at  1615,  a  formation  of 
30  ships  including  warships  was  sailing  cast,  25  miles  north 
of  Bone.   In  Bizerta  and  off  the  port  a  reduction  in  landing 
vessels  and  an  increase  in  freighters  was  observed.  At  1600, 
about  70  large  and  small  vessels  were  counted  there. 

Submarines  were  re- orted  near  Elba,  near  Ca   -  alazzo  and 
northeast  of  Brindisi. 

In  the  Eastern  Mediterranean,  several  convoys  of  4  -  7  &?,?.!  1 
vessels  ana  a  bigger  convoy  of  10  medium-sized  freighters  with 
8  escort  vessels  on  a  northwesterly  course  were  detected  in 
the  aftsrnoon  between  Alexandria  and  Tobruk. 

wording  to  an  Intelligence  Report  from  Spain,  from  a  dip- 
lomatic source  in  fodrid,  a  completely  equipped  operational 
army  is  assembled  at  Benghozi  and  in  Syria  where  the  main  of- 

nsive  is  to  be  expected. 


-226-  •        confidential 


CONFIDENTIAL 
16  Jul.  1943 

3.  Own  Situation  in  Other  Parts  of  the  Mediterranean: 

Torpedo  boat  TA  "11",  1  anti-aircraft  corvette,  1 
aviso,  5  motor  minesweepers,  2  Italian  torpedo  boats  and  2 
Italian  corvettes  are  operating  in  the  escort  service.  One 
tanker,  1  steamer,  and  2  tugs  were  escorted  in  the  Sicilian 
traffic  and  5  steamers  in  the  Corsica  traffic,  A  motor  ship 
en  route  from  Genoa  to  Maddalena  put  in  to  Leghorn  at  l600 
because  of  sighting  the  enemy,, 

"Brandenburg"  and  "Pomnern"  have  been  ordered  to  move  from 
Toulon  to  Maddalena.  The  harbor  of  Toulon  has  been  temporar- 
ily closed  because  of  suspected  mines. 

In  regard  to  a  new  method  of  attack  adopted  by  enemy  torpedc 
planes,  German  Naval  Command,  Italy  reports  that  6-8  inde- 
pendent planes  attack  at  an  acute  angle  from  ahead  or  behind 
and  drop  surface-runner  torpedoes  100  meters  in  front  of  the 
target  whereas  the  main  group  waits  across  the  course  some 
distance  away.  Naval  Staff  has  forwarded ' this  information 
to  all  operational  stations  without  delay.   (See  teletype  1717)* 

4.  Area  Naval  Group  South: 

Aegean: 

On  15  Jul,,  the  tanker  "Celeno",  in' Piraeus,  was 
sabotaged  by  the  explosion  of  a  blasting  charge.  The  ship 
had  to  be  docked  because  of  leaks.  The  convoy  of  the  steamer 
S INFRA  had  to  change  course  from  Salonica  to  Piraeus  because 
of  engine  trouble.  Other  convoy  traffic  proceeded  according 
to  plan. 

Army  Group,  Southeast  reports  that  insurgents  activities  have 
suddenly  started  in  Crete.  Weapons  and  explosives  have  been 
found. 

Special  Items: 

Naval  Staff  has  called  the  attention  of  Armed  Forces,  High 
Command,  Supply  and  Transportation  Office  for' Armed  Forces 
Overseas  and  Armed  Forces  Operations  Staff  op,  and  of  Naval 
Group  South  and  German  Naval  Command,  Italy,  for  information 
to  the  urgency  of  transferring  the  supply  traffic  from  Greece 
that  is  still  using  the  western  route,  to  the  eastern  route 
since,  in  view  of  current  developments,  it  may  be  expected 
that  the  Adriatic  will  be  cut  off  in  the  near  future.  Naval 


-227-  CONFIDENTIAL 


CONFIDENTIAL" 
16  JttU  1943 

Staff  has  suggested  that  no  more  ships  arriving  from  the  Ad- 
riatic in  Piraeus  be  returned  as,  in  view  of  the  length  of 
the  voyage,  it  is  unlikely  that  another  round  trip  could  be' 
completed  and  the  ships  would  then  be  missed  in  the  ^egean. 
For  copy  of  order  l/Skl  II  19967/43  Gkdos,  see  War  Diary, 
Part  C,  Vol.  XI. 

Black  Sea: 

Enemy  Situation: 

One  steamer,  one  guard  ship,  one  minesweeper  and 
two  motor  minesweepers  were  sighted  on  a  northwesterly  course 
southeast  of  Tuapse,  Two  ships  in  tow  and  one  motor  minesweeper 
were  sighted  no rthwest  of  Tuapse «► 

Own  Situation: 

In  the  night  of_l6  Jul.,  the  PT. boats  were  not 
sent  out  because  of  the  phase  of  the  moon.   The  patrol  posi- 
tions were  taken  in  as  scheduled.  Enemy  planes  attacked  the 
142nd  Anapa  transport  with  bombs  and  gun  fire  at  1415  south- 
west of  the  Kerch  Strait,  Minor  casualties  were  sustained. 
Six  of  the.  attacking  planes  were  shot  down  by  fighters.  Two 
.more  mines  were  cut  in  the  enemy  barrage  southeast  of  Kerch 
Strait, 

On  14  Jul,  six  planes  were  observed  laying  mines  in  the  Danube 
estuary  between  Topalul  and  Dunera.  All  shipping  was  cancelled. 
On  15  Jul.,  further  mines  were  reportedly  dropped  in  the  Dan- 
ube estuary  near  Sulina.   Ilinesweeping  is  underway. 

The  supply  and  ferry  traffic  was  carried  out  according  to  sche- 
dule and  without  incident, 

VIII.  Situation  in  East  Asia: 

Nothing  to  report. 


-228-  CONFIDENTIAL 


CONFIDENTIAL 
17  Jul.  1943 

Items  of  Political  Importance. 

Nothing  to  report. 

Conference  en  the  Situation  with  Chief  of  Staff,  Naval  Staff : 

I.  Naval  Staff,  Quartermaster  General  reported  that  the 
dispatch  of  the  "Gneisenau"  railway  battery  from  Sete  to 
southern  Italy  will  be  expedited.  Further  steps  will  be  taken 
upon  orders  of  Commanding  General,  Armed  Forces,  South, 

Naval  Staff,  Quartermaster  General  also  reported  on  a  confer- 
ence held  at  the  German  Foreign  Office  on  the  question  of 
inflation  in  Greece.  No  way  has  been  found  of  enabling  the 
Navy  to  buy  the  repair  materials  required  at  the  dock-yards* 
It  is  a  grotesque  situation  when  one  of  the  services  is  un- 
able to  obtain  the  essential  material  which  is  available  in 
a  conquered  and  occupied  territory  because  the  control  of 
finance  is  insufficient  tc  overcome  inflationary  tendencies. 
The  simultaneous  occupation  of  the  country  by  the  Germans  and 
the  Italians  is  largely  responsible  for  this  state  of  affairs. 

Chief  of  Staff,  Naval  Staff  ordered  that  the  information  be 
given  to  the  Admiral  attached  to  the  Fuehrer  Headquarters  who 
will  report  it  tc  Armed  Forces,  High  Command  or  to  the  Fuehrer. 

II.  Naval  Staff,  Naval  Intelligence  Division  reported  on 'the  call 
issued  by  Roosevelt  and  Churchill  to  the  Italian  prcple,  by  broadcast 
and  leaflet,  and  on  the  reaction  of  the  Italian  press.   For 
details,  see  Report  on  the  Foreign  Press. 

III.  Naval  Staff,  Quartermaster  General  reported  that  Quarter- 
master Division  is  investigating  how  German  support  may  be 
provided  for  the  defense  of  Toulon  in  case  of  need.  The  es- 
tablishment of  a  new  Naval  Artillery  Detachment  is  contempla- 
ted. Replacement  of  the  Sete  Battery  is  not  considered  nec- 
essary. 

Chief  of  Staff,  Naval  Staff  ordered  that  Admiral, ' Fuehrer- 
Headquarters  is  to  be  advised  of  this  matter  also.  Chief, 
Naval  Staff  will  be  briefed  of  the  subject  at  Fuehrer  Head- 
quarters by  Chief  of  Staff,  Naval  Staff. 

Special  Items: 

I,    Naval  Staff,  Naval  Intelligence  Division  reported  on 


-229-  CONFIDENTIAL 


CONFIDENTIAL  * 
17  Jul.  1943 

the  use  of  radio  location  in  landing  operations .  According 
to  a  note  in  the  Times,  the  American  radio  location  device 
Radar  ("radio  detection  and  range")  -was  used  most  success- 
fully during  the  landing  at  Attu.  It  -was  only  by  means  of 
this  device  that  the  transport  vessels  could  be  brought  to  • 
the  right  positions  and  the  landing  troops  to  the  pre-estab- 
lished landing  points.  Without  the  device,  it  would  have 
been  impossible* to  carry  out  the  operations  according  to  plan 
and  on  schedule,. 

In  the  Mediterranean,  a  radar  set  (lattice  tower)  was  ob- 
served on  the  bridge  of  a  250  ton  LCT, 

It  may  undoubtedly  be  assumed  that  'the  command  boats 
of  the . landing  flotillas  are  equipped  with  these  de- 
vices, so  that  landings  are  possible  under  the  espec- 
ially effective  protection  of  poor  visibility  at  night 
and  in  fog* 

For  report  as  per  l/Skl  21223/43  geh.  see  War  Diary,  Part  D, 
Evaluation  of  Reports  on  "Foreign  Navies 0" 

II.   When  the  transfer  of  the  11th  Motor  Minesweeper  Flotilla 
from  the  Seine  to  the  Saone  is  accomplished,  all  current  pro- 
jects of  this  kind  will  have  been  completed.   Naval  Staff, 
Operations  Division, has  therefore  been  investigating  whether 
any  other  vessels  can- b.e  moved  to  the:  Mediterranean  and,  as 
a  result,  has  ordered  Naval  Staff  Quartermaster  Division, 
that,  no  vessels  (either  naval  landing  craft,  motor  mine*- 
sweepers  or  PT  boats)  are  to  be  transported  by  this  route 
until  further  orders.  For  copy  of 'order  l/Skl  I  op  20012/43 
Gkdos  see  War  Diary,  Part  C,  Vol„d„ 

IIIc  On  the  occasion  of  a  visit  to  the  PT  boat  Flotillas  in 
the  West  Area,  Chief,  Naval  3^.aff  ordered  that  an  experienced 
PT  boat  officer  be  detached  immediately  to  Supreme  Command, 
in  order  to  handle  the  affairs  of  Commander  PT" Boats  and  act 
as  his  representative  with  the  Supreme  Command.  Commander 
PT  Boats  has  suggested  that  this  sould  be  done  within  the 
organization  of  Naval  Staff,  Quartermaster  Division  and  that 
the  liaison' officer  should  hold  a 'simultaneous  office  in 
Naval  Staff,  Operations  Division." 

Naval  Staff,  Operations  Division  approved  the  inclusion  of 
the  officer  in  Naval  Staff,  Quartermaster  Division  but  con- 
sidered the  rest  of  the  suggestion  too  comprehensive.  The 
essential  thing  is  the  officer's  influence  on  the  other  di- 
visions from  his  position  in  Naval  Staff,  Quartermaster 


-230-  CONFIDENTIAL 


CONFIDENTIAL 
17  Jul.  1943 

Division,  Fleet  Branch,,  In  case  the  cooperation  of  this 
officer  should  become  necessary  during  the  discussion  of  such 
questions  with  Naval  Staff,  Operations  Division  should  require 
this  officer's  cooperation  on  any  given  question,  he  can  be 
called  in  as  an  expert  without  need  for  a  part  time  detachment. 
This  point  of  view  has  been  forwarded  to  Naval  Staff,  Quarter- 
master Division,  Fleet  Branch „ 

Situation  on  17  Jul,  1943 : 

I,    War  in  Foreign  Waters: 

la    Enemy  Situation: 

The  German  Consulate  at  Lourcnco  ifarques  reported 
on  14  Jul,  that,  according  to  the  statements  of  Portugese 
working  at  the  harbor,  three  British  Army  formations  are  stand- 
ing by  on  the  Persian  frontier  near  Baker  in  order  to  secure 
the  oil  fields  in  case  of  a  separate  peace  with  Russia  (i)9 

According  to  the  same  report,  an  agent  states  that  an  aircraft 
carrier  recently  left  Cape  Town  for  Mombassa  and  that  on  9 
Jul.  a  convoy  of  14  ships  with  planes  and  troops  left  for  India* 
Two  passenger  steamers  will  shortly  bring  troops  and  evacuees 
to  Egypt,  Owing  to  the  dinger  from  submarines,  the  shipping 
route  has  bjcn  shifted  to  130  miles  south  of  Madagascar* 

On  6  Jul.,  the  "Charlotte  Schliemann"  sighted' one  (apparently) 
transport  on  course  340°  in  l6°10»  S  S8°30»  E. 

2„    Own  Situation: 

Naval  Attache,  Tokyo  reports  that  the  "Marco 
Polo"  was  met  at  1145  on  15  Jul,  and  arrived  at  Penang  on  16 
Jul. 

v~ui  st/iff  advised  Shir  "28"  by  radiogram  1632,  of  the  arriv- 
al of  the'SCHLIEIIANN  <it  Djakarta  and  of  the  AQUILA  at  Singapore 
on  13  Jul,,  the  closing  of  the  Lombok  Strait  by  the  Japanese 
Naval 'Staff  and  on  the  above  sighting  report  from  the  SCHLIE- 

mann;. 

During  the  past  three  weeks  our  radio  intelligence  has  inter- 
cepted several  reports  of  submarine  sightings  in  the  Arabian 
Gulf  and  the  Gulf  of  Oman,  Naval  Staff  has  informed  Naval 
Attache,  Tokyo  .and  instructed  him  that  details  as  to  how  many 
Japanese  submarines  are  operating  in  that  area  are  required 


-231-  CONFIDENTIAL 


CONFIDENTIAL  ' 

17  Jul.  1943 

in  order  to  come  to  conclusions  about  the  enemy  patrols. 

The  same  question  was  forwarded  to  Tokyo  by  the  Japanese 
Liaison  Officer  on  10  Jul.  The  answer  is  still  awaited. 
According  to  the  Japanese  Captain  Emi,  who  arrived  with  Sub- 
marine U  "180",  one  or  two  Japanese  submarines  are  operating 
in  the  Gulf  of  Arabia e 

Naval  Staff  has  approved  the  suggestions  forv/arded  by  Naval 
Attache,  Tokyo  in  regard  to  the  rigging  of  the  various  block- 
ade runners.   (See  teletype  1145)©  Naval  Staff  further  in- 
formed Naval  Attache,  Tokyo  that  the  fate  of  the-'Aquila  boat 
which,  according  to  dead  reckoning  should  have  arrived  at 
the  rendezvous  point  on  22  Jul0,  is  uncertain  as  she  has  not 
reported  since  6  Jun,   (See  teletype  2200) , 

II »   Situation  West  Area: 

la    Enemy  Situation: 

Forty-one  planes  were  detected  in  the  Bay  of  Bis- 
cay. The  greatest  activity  was  noticed  between  1200  and  1500, 
At  2350,  one  British  unit  was  in  BE  3110  according  to  dead 
reckoning,, 

The  Intelligence  Service  reports  from  a  so-far  unreliable 
communist  source  at  Calais  that  an  attack  on  the  French  . 
Channel  coast  is 'expected  on  17  Jul,, 

20    Own  Situation: 

Atlantic  Coast: 

Two  ELK/J  mines  were  cleared  off  Brest  and  off 
Lorient.  Another  ELM./ J   mine  exploded,  in  a  fishing  net  near 
Concarneau,  Destroyer  Z  "32"  will  probably "dock  at  Fauillac 
on  18  Jul.  in  order  to  change  its  propeller. 

In  its  report  on  torpedo  night-firing  practice,  8th  Destroyer 
Flotilla  stated  that  two  unidentified  planes  had  flown  over. 
(See  War  Diary  15  Jul,  teletype  2340.)  The  flotilla  now  re- 
ports that  it  has  been  established  that,  one  of  these  was  a 
German  experimental  plane  while  the  other  was  apparently  an 
enemy  torpedo  bomber  because  acoustic  observation  made  by 
destroyer  Z  "24"  of  two  fast  running  torpedoes  tallied  ex- 
actly with  the  sighting  observation  of  destroyer  Z  "37" • 
In  these  circumstances,  the  flotilla  rightly  considers  that 
only  night  attack  exercises  without  torpedo-firing  are  suit- 
able at  night, 

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CONFIDENTIAL 
17  Jul.  1943 

HI,  North  Sea,  Norway,  Northern  Waters: 

North  Seat 

On  16  Jul,,  one ' ED4/J-mine  was  cleared  by  a  minesweeping 
plane  near  Heligoland,  Casualties  were  caused  among  the  crew 
of  minelayer  M  "203"  when  a  bomb  hit  the  boat's  shelter  at 
Amsterdam, 

An  enemy  bomber  formation  that.,  during  the  forenoon,  pene- 
trated north  of  Heligoland,  turned  northwest 'without  attacking 
the  coast,  presumably  because  of  the  ceiling. 

Convoy  and  escort  services  were  carried  out' according  to 
schedule  in  the  area  of  Commanding  Admiral,  Defenses  North 
Sea, 

Norway,  Northern  Waters; 

1,    Enemy  Situation; 

Twenty-one  planes  were  observed  in  operation  over 
the  N0rth  Sea  and  fourteen  planes  in  the  area  of  15th  Group, 
At  0154  Radio  Intelligence  intercepted  the  following  report 
from  the  Russian  guard  boat  "408":   "Fighting  against  four 
enemy  vessels.  Position  16007'  North" 0 

According  to  air  reconnaissance  on  the  morning  of  16  Jul„," 
one  merchantman  of  1,000  BRT  was  on  course  270°  in  An  S635o 
Photographic  interpretation  of  16  Jul,  showed  6  coastal  freigh- 
ters totalling  2,265  BRT  at  Belushya,  several  small  barges  at 
Krassino,  1  barge  of  1500  BRT  and  1  tug-steamer  at  Shonia, 
4  paddle-steamers  and  one  barge  (2,000  BRT)- in  the  Petshora 
mouth  and "at  Naryan  Maar^  1  small  freighter,  2  barges  in 
Mctka  Bay, 

2*    Own  Situation: 

At  0337  on  15  Jul,,  1th e  battery  and  village  of 
Kiberg  were  attacked  by  eight  enemy  planes  with  bombs  and 
gunfire.  One  plane  was  shot  down.  On  the  same  day,  German 
and  Russian  batteries  exchanged  fire.  At  0120  on  16  Jul,, 
Russian  batteries  bombarded  a  Petsamo  convoy  without  causing 
any  damage. 

At  0135  on  17  Jul.,  the  mine  formation  "Ostmark",  escorted 
by  two  minesweepers  and  one  BV  138  was  attacked  by  an  enemy 
submarine.  Mine  layer  M  "346"  sank  after  being  hit  by  two 


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CONFIDENTIAL- 
17  Jul,  1943 

torpedoes.  Thirty-two  men  are  missing,,  The  "Ostmark"  was 
able  to  evade  three  torpedoes.  Submarine  chaser  UJ  "1705" 
was  s\ink  near  Sogneoksen  during  a  bomb  and  gun  fire  attack 
by  six  enemy  planes n  At  0632  our  reconnaissance  sighted  a 
submerging  enemy  submarine  in  AN  31°29'o  Two  minesweepers 
and  one  plane  have  been  sent  out  on  submarine  hunt0 

On  16  Jul,,  one  BF  109  was  shot  down  during "an  air  attack 
with  bombs  and  gun  fire  on  a  Petsamo  convoy.  The  pilot  was 
rescued,, 

Eighteen  ships  were  escorted  to  the  north  and  24  ships  to" 
the  south.  Three  ships  are  held  up  due  to  lack  of  escort. 

At  0100  submarine  U  "601"  and  U  "625"  left  Tromsoe  for  mine 
operations  "Aster"  and  "Nelke". 

Group  North  reports  that  the  turbines  of  destroyer  Z  "28" 
have  to  be  removed  and  suggests  that  the  boat  be  released 
for  docking  at  TrondheimB   (See  teletype  0019) • 

Naval  Staff  has  informed  Group  North  Fleet  that  it  will  not 
be  necessary  to  withdraw  torpedo  boats  T  "20"  and  "21"  for 
use  as  torpedo  recovery  vessels  before  the  arrival  of  destroy- 
er Z  "29"  and  "33"  because  Commanding  Admiral  submarines  has 
agreed  to  the  request  for  four  torpedo  recovery  vessels  being 
only  partly  fulfilled  for  the  time  being. 

Following  Naval  Staff's  approval  of  the  operational  plan  for 
the  repeat  of  "Wunderland",  complete  understanding  has  been 
reached  between  Group  North  Fleet  and  Commanding  -admiral, 
Task  Force  and  Admiral  Northern  Waters  respectively  on  the 
question  of  the  freedom  of '  attack  for  the  commandant  of  the 
"Luetzow".  In  this  regard,  Group  North  has  ordered  that  the 
final  operational  order  be  formulated  as  follows: 

"As  soon  as  the  "Luetzow"  reaches  her  waiting  position,  the 
commandant  is  free  to  attack  at  his  own  discretion  in  accord- 
ance with  information  received,  provided  the  attacking  posi- 
tion and  ice  conditions  are  favorable  and  the  action  offers 
reasonable  prospects  of,  success." 

The  above  authorities  also  came  to.  an  agreement  concerning 
the  action  to  be  taken  upon  encountering  the  enemy  and  the 
breaking-off  of  the  operation.  The  relative  teletype  corres-' 
pondence  which  was  forwarded  for  the  attention  of  Naval  Staff, 
Operations  Division,  is  in  the  files  of  naval  Staff,  Opera- 
tions Division,  Fleet  Operations  Section. 


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CONFIDENTIAL 
17  Jul,  1943 

IV.   Skagerrak,  Baltic  Sea  Entrances.  Baltic  Sea: 

10    Enemy  Situation: 

Strong  enemy  artillery  activity  against  our 
coastal  area  and  the  rear  positions  was  observed  in  the 
Kronstadt  Bay  during  the  day.  Tugs  and  guard-boat  traffic 
■was  only  light .  There  were  3  small  freighters  and  28  guard 
boats  and  PT  boats  in  Lavansari,  according  to  our  own  and 
Finnish  air  reconnaissance,.  Northwest  of  Schepel  there  were 
3  minesweepers e  *  Isolated  guard  ships  were  in  positions  in 
the  island  areaa 

2.    Own  Situation: 

No  reports  have  come  in  from  the  areas  of  Com- 
manding Admiral,  Defenses  East  and  Admiral,  Denmark. 

Patrol  and  mine  operations  in  the  area  of  Commander,  Mine- 
sweepers Baltic  were  carried  out  according  to  plan. 

The  nPrinz  Heinrich"  battery  is  out  of  action  for  3-4" 
weeks  because  the  foundations  have  again  subsided  badly, 

V„    Merchant  Shipping: 

A  survey  by  Naval  Staff,  Quartermaster  Division, 
Shipping  and  Transport  Branch  of  the  sea  transport  capacity 
of  the  German  Navy  in  May  1943  is  filed  as  per  l/Skl  21504.43 
gen,  in  War  Diary  Part  C,  Vol.  XI. 

VI.   Submarine  Warfare: 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

In  the  area  of  Finisterrc,  U  "558"  drove  off  a 
low-flying  Liberator  which  attacked  with  extremely  heavy  fire 
and  light  bombs,  without  suffering  any  damage. 

The  tanker  submarine  U  "487"  which  had  sailed  to  supply  the 
Monsoon-boats,  is  missing  and  must  be  presumed  lost.  This 
loss  is  a  heavy  blow0  The  Monsoon-boats  vail  now  have  to 
be  supplied  by  taking  two  IX  C-boats  out  of  active  operation 


-235-  CONFIDENTIAL 


ONFIDENTIAL 
17  Jul,  1943 

and  by  the  boats  dividing  up  "their  fuel  amongst  themselves. 
The  two  IX  C-boats  vn.ll  subsequently  have  to  refuel  on  the 
■way  b?.ck  from  a  tanker  at  seav. 

Submarine  U  "306"  sank  four' ships  for  a  total  of  27,000  BRT 
and  probably  sank  another  5,000  BRT  out  of  a  convoy  of  9 
steamers  and  5  destroyers  under  air  escort  off  the  West 
African  boast  in  EK,  Submarine  U  "572"  sank  2  freighters 
in  EC'  and  submarine  U  "508n  sank  a  steamer  of  7369  BRT  in 
EV  9933* 

On  10  Jul.,  the  "I-krco  Polo"  sank  a  steamer  of  7,000  BRT  in 
the  Indian  Ocean  southwest  of  the  southern  end  of  Madagascar. 

Two  more  boats "have  been  designated  for  conversion  into  anti- 
aircraft boats. 

VII.  Aerial  Warfare: 

British  Isles  and  Vicinity: 

The  3rd  Air  Force  had  125  planes  in  operation  in  the 
west  and  11  planes  in  the  Mediterranean,  An  attack  by  about 
200  four-engined  bombers  against  the  coastal  area  of  northern 
Germany  was  not  carried  through  presumably  due  to  the  bad 
weather.  In  the  forenoon,  Amsterdam  was  attacked  by  strong 
forces.   Considerable  damage  was  done  to  the  town.  The  Focker 
works  and  a  dockyard  which  were  presumably  the  target  of 
attack,  were  undamaged. 

Six  enemy  planes  were  shot 'down  by  our  fighters  with  a  loss 
of  five  planes  on  our  side. 

During  the  night  of  17  Jul.,  harassing  flights  without  attacks 
were  observed  in  German  controlled  territory. 

Mediterranean  Area: 

Our  Air  Force  carried  out  reconnaissance  flights.  As 
a  partial  result  of  the  dawn  attack  on  naval  targets  off 
Syracuse  on  the  night  of  15  Jul.,  it  is' reported  that  1  ship' 
of  1500  BRT  was  sunk  and  7  ships  for  28,000  BRT  were  damaged, 
Other  hits  were  scored  by  light  bombers  on  ships  entering 
Augusta.  At  2155  on  17  Jul.,  a  destroyer  was  set  on  fire 
by  anti-aircraft  fire  north  of  Catania,  /mother  hit  was 
scored  on  a  cruiser. 


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CONFIDENTIAL 
17  Jul.  1943 

In  the- afternoon,  Naples  was  attacked  by  strong  enemy  air 
forces,  in  five 'waves,  with  fighter  protection.  Railway 
installations  and  Army  supply  dumps  were  damaged,,   Five  of 
the  attacking  planes  were  shot  down  by  anti-aircraft  fire. 
In  the  night  of  17  Jul.,,  our  airfield  at  Pomigliano  was 
attacked.   No  reports  on  damage  have  yet  come  in. 

Eastern  Front; 

Eighty  enemy  planes  were  shot  dovm  on  16  Jul.  on  the 
Army  front. 

VIII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

1.    Enemy  Landing  in  Sicily: 

Situation  on  land: 

Enemy  pressure  is  increasing  all  along  the  front* 
Further  landings  on  the  east  coast  of  Sicily  have  been  con- 
firmed. 

Situation  at  Sea: 

At  0220,  20  vessels  were  sighted  10  miles  north- 
east of  Catania  and  6  merchantmen  on  a  southeasterly  course 
19  miles  southeast  of  that  port.  At  the  same  time  there  were 
1  battleship  and  2  heavy  cruisers  between  Syracuse  and  Cape 
Passerow  At  0242,  15-20  vessels  were  reported  south  of  Cape 
Passero  and  5  merchantmen  and  2  destroyers  to  the  east*  The 
battleship  and  the  two  cruisers  were  observed  again  at  1930 
five  miles  southeast  of  Catania.  At  1825  7  big  merchantmen 
and  8   escort  vessels  were  sailing  northeast  20  miles 
northeast  of  Malta. 

In  the  night  of  15  Jul.,  an  Italian  submarine  torpedoed  a 
battleship  in  the  sea  area  Syracuse  and  observed  an  explosion. 
Another  Italian  submarine  scored  two  hits  on  a  destroyer. 
The  Italian  cruiser  SCIPI0NE  AFRICAN0  en  route  from  Naples 
to  Taranto  during  the  night  of  16  Jul.  had  an  engagement 
with  4  KGBs  and  sank  one  of  them. 

No  action  reports  have  been  received  from  our  own  submarines, 
3rd  and  7th  PT  Boat  Flotillas  were  not  in  operation  because 
preparation  for  action  has  been  delayed  by  the  enemy  air  at- 
tacks on  the  dockyards.  PT  Boat  S  "154"  and  "157"  will  leave 
Salerno  for  Toulon  in  the  evening.  According  to  a  report 


-237-  CONFIDENTIAL 


CONFIDENTIAL 
17  Jul.  1943 

from  German  Naval  Command,  the  last  German  naval  establish- 
ments will  leave  the  Trapani  area  on  18  Jul.  Captain  von 
Kamptz  has  been  assigned  by  German  Naval  Command  as  Commander 
Defenses  Messina  Straits  under  the  direct  control  of  Ger- 
man Naval  Command,,  His  task  is  to  protect  the  ferry  traffic 
against  light  enemy  forces „   Fast  escort  command  boat  SG  "14" 
and  7  motor  minesweepers  have  been  placed  under  his  opera- 
tional command.  Furthermore,  Commander  Transports  Messina 
Straits  will  provide  him  with  naval  artillery  lighters,  com- 
bat barges  and  naval  landing  craft  as  required. 

At  the  request  of  German  Naval  Command  Italy,  Naval  Staff 
Quartermaster  Division  has  approved  the  establishment  of 
Commander,  Sea  Transport  for  Messina  Strait  and  Sardinia  — 
Corsica.  The  posts  will  be  filled  by  the  German  Chiefs  of 
Staff  at  Messina  and  Maddalena9 

According  to  information  from  Armed  Forces  High  Command,  Op- 
erations S^aff,  the  Fuehrer  has  ordered  that  8  -  21cm  guns 
of  Army  Group  North  are  to  be  delivered  to  the  Havy  for  the 
Straits  of  Messina.  The  guns  will  be  replaced  by  other  means. 
Army  General  S-j-aff  has  been  requested  to  deliver  the  guns 
with  ammunition  to  the  Naples  area  where  the  Navy  will  take 
them  over  and  man  them  with  naval  personnel.  It  is  planned 
to  allot  more  guns 'to  the  Navy  from  the  new  production  of 
June  and  July  1943 o 

2,    Enemy  Situation  in  Other  Parts  of  the  Mediterranean 

The  convoy  of  12  big  transports  which  entered  * 
Gibraltar  on  the  evening  of  16  Jul.  from  the  Mediterranean, 
and  not  from  the  Atlantic  as  reported  by  the  Italians,  left 
for  the' Atlantic  on  17  Jul.  It  was  escorted  by  1  Dido-class 
cruiser,  2  destroyers  and  3  frigates. 

No  shipping  traffic  was  observed  in  the  Western  or  the  Eastern 
Mediterranean.  According  to  an  agent's  report, a  convoy  will 
leave  Or in  on  18  Jul.  and  will  enter  Bone  in  the  night  of  20 
Jul. 

Submarines  were  reported  2,0   miles  north  of  Corsica  and  38 
miles  west-southwest  of  Civitavecchia.  According  to  Radio 
Intelligence  there  was  strong  reconnaissance  activity  in 
the  Sicilian  area  and  in  the  Tyrrhenian  Sea,  concentrating 
on  the  Straits  of  Messina 0 


-238-  CNFIDENTIAL 


CONFIDENTIAL 
17  Jul.  1943  • 

3.  Own  Situation  in  Other  Parts  of  the  Mediterranean 
Sea  Transport  Situation : 

"Brandenburg"  and  "Pommern"  left  Toulon  for 
Maddalena  at  2300,  Torpedo  boat  TA  "11",  fast  escort  SG  "14", 
5  motor  minesweepers,  1  Italian  torpedo  boat  and  3  corvettes 
were  engaged  in  escort  service.  One  steamer,  1  tanker  and 
2  tugs  were  escorted  in  the  Sicilian  traffic  and  5  steamers 
in  the  other  island  traffic*.  German  Naval  Command,  Italy- 
has  forwarded  the  brief  battle  report  of  the  mine  ship 
"Pommern"  on  the  torpedo  planes  attack  of  11  Jul,  For  copy 
see  teletype  1900. 

According  to  the  weekly  report  of  German  Ilaval  Command,  Italy 
for  8  -  14  Jul.,  the  supply  for  Sicily  including  traffic 
across  the  Straits  is  assured  for  the  time  being  during  good 
weather.   The  number  of  small  vessels  with  reliable  engines 
is  short  for  the  increased  demand.  The  supply  situation  for 
Corsica  and  Sardinia  is  regarded  as  good. 

Mine  operation  H  6  D  was  completed  by  6th  Defense  Flotilla. 

The  "Gneisenau"  Battery  will  leave  Sete  for  Italy  on  18  Jul. 

4.  Area  Naval  Group.  South; 
Aegean: 

Enemy  Situation: 

•  According  to  an  Intelligence  Report  of  16  Jul. 
from  Athens,  Greek  exx>fficers  expect  a  British  landing 
operation  to  take  place  near  Prevesa,  in  the  Gulf  of  Arta 
and  near  Caterina  in  the  Gulf  of  Salonika.         -  ' 

Submarines  were  reported  on  16  Jul.  .south  of  Sphakia  (Crete), 
on  17  Jul.,  at  noon,  north  of  Itaklion  and  Heraklien,  and  in 
the  afternoon,  east-southeast  of  Sphakia. 

Own  Situation: 

Three  more  mines  were  cleared  from  an  enemy  bar- 
rage southeast  of  Salonika.  No  other  events  of  any  impor- 
tance. 

Group  South  has  again  called  attention  to  the  strong  inad- 
visability  of  leaving  the  control  of  Corfu-Patras  convoys  in 

-239-  CONFIDENTIAL 


CONFIDENTIAL 
17  Jul.  1943 

the  hands  of  the  Italian  Navy  in  view  of  the  development  of 
the  situation  in  the  Ionian  Sea.   The  Group  is  trying  tc  in- 
crease its  influence  by  assigning  Naval  liaison  officers  to 
the  Italian  offices  at  Patras,  Prevesa  and  Corfu  to  safe- 
guard German  interests.   (See  teletype  2040) «, 

Black  Sea: 


Enemy  Situation: 

Nothing  to  report „ 

Own  Situation: 

At  0445,  the  Thecdosia  convoy  was  unsuccessfully 
attacked  by  an  enemy  submarine  near  Cape  Clauda.   The  Mar- 
iupol-Taganrog convoy  was  also  unsuccessfully  attacked  by 
two  enemy  planes  early,  on  16  Julc  Four  enemy  planes  attacked 
Yalta  on  the  afternoon  of  16  Jul.  No  naval  damage  was  done. 
In  regard  to  the  attack  on  the  Anapa  transport  in  the  south- 
eastern part  of  the  Kerch  Strait  it  has  been  additionally 
reported  that  an  old  combined  operations  boat  in  tow  was 
lost  and  that,  besides,  minor  casualties  were  sustained. 
The  naval  landing  craft  shot  down  two  enemy  planes  certainly 
and  a  third 'probably.  Six  more  enemy  planes  were  shot  down 
by  fighters. 


At  1936,  submarine  U  "IS"  sank  a  freighter  of  about  2,000  BRT 
20  miles  southeast  of  Tuapse.   The  boat  was  attacked  with 
depth  charges  and  aircraft  bombs  and  turned  back  to  Theodosia- 
Submarine  U  "23"  put  into  Sevastopol  for  a  short  repair. 
During  the  night  of  17  Jul.,  1st  Minesweeper  Flotilla  will 
operate  in  the  sea  area  south  of  Anapa  in  order  to  keep  off 
enemy  mine  layers. 

Supply  and  ferry  traffic  was  carried  out  according  to  plan 
and  without  incident, 

IX,   Situation  in  East  Asia: 

According  to  Allied  reports,  the  U.S.  destroyer  "Gwin" 
which  was  damaged  on  13  Jul.  in  Kula  Bay,  has  since  sunk. 

Another  Allied  report  states  that  fort  Uubo  in  New  Guinea 
has  been  captured  by  Allied  troops .  The  advance  on  Kunda 
continues. 


-24C-  0NF1D5KTIAL 


CONFIDENTLY 
18  Jul.  1943 
Sunday 

Items  of  Political  Importance: 

Nothing  to  report* 

Special  Items: 

I0    On  13  Jul.,  Naval  Staff,  Operations  Division  informed 
the  Naval  Groups,  Naval  Commands  Norway,  Baltic  Sea  and  North 
on  the  decision  taken  by  Naval  Staff  in  regard  to  the  re- 
quests received  for  the  torpedo  barrage  batteries.  The 
decision  follows  the  lines  of  the  statement  submitted  to 
Naval  Staff,  Quartermaster  Division  as  per  memorandum  in  War 
Diary  of  24  Jun.   -*-n  addition,  at  the  request  of  Group  South 
it  was  decided  that  a  group  of  torpedo  tubes  will  be  allotted 
for  a  battery  to  be  set  up  in  the  Aegean,  and  two  twin-tube 
sets  will  be  made  available  for  the  Black  Sea,  Installation 
must  bo  done  by  locally  available  means. 

Since  the  first  trials  with  recoil-torpedoes  have  been  suc- 
cessful, Naval  Staff  has  ordered  that  their  development  be 
continued  with  a  view  to  early  operational  employment.  As 
soon  as  this  torpedo  is  ready  for  use,  the  matter  of  under- 
water 'batteries  with  tubes  on  the  coast  can  also  be  tackled 
again. 

II.   Naval  Staff  has  forwarded,  by  teletype,  to  all  opera- 
tional stations  concerned  with  coastal  defense  information 
on  the  use  of  radar  devices  on  LCTs  in  the  Mediterranean 
and  on  the  radar  device  used  in  the  landing  on  Attu.   (See 
War  Diary  17  Jul.).  For  teletype  l/Skl  I  op  21560/43  g eh. 
sec  War  Diary  Part  B  Vol.  V, 

Situation  on  13  Jul.  1943 

I.    Warfare  in  Foreign  Waters: 

1.  Enemy  Situation:  _ 

The  German  Foreign  Office  has  received  informa- 
tion from  Stockholm  that  a  big  convoy  carrj/ing  war  material 
will  leave  the  USA  for  England,  with  air  escort,  on  17  Jul, 

2,  Own  Situation: 

No  reports  have  been  received  on  our  own  vessels. 

All  ships  in  foreign  waters  have  been  informed  on  the  enemy 
position  by  radiogram  0829. 

-241-  .  CONFIDENTIAL 


CONFIDENTIAL 
18  Jul.  1943 
Sunday 

II.   West  Area: 

1.  Enemy  Situation: 

Thirty-five  planes  were  detected  over  the  outer 
Bay  of  Biscay  up  to  Cape  Villano  and  15°W.  A  British  vessel 
was  located  in  AL  5850  at  1240  and  another  in  AL  6740  at  1243, 

According  to  air  reconnaissance,  there  was  a  convoy  of  14 
vessels  on  course  345°  in  CG  4578  (off  Lisbon)  at  2020.  At 
2045  Radio  Intelligence  intercepted  a  report  en  an  attack  by 
an  FW  200  on  the  convoy  "Manicure",  evidently  from  the  same 
formation. 

2,  Own  Situation: 


Atlantic  Coast: 


Two  ELM/j-mines  were  swept  off  Lorient  and  one  off 
Bayonne. '  In  the  evening,  destroyer  Z  "32"  went  into  dock  at 
Pauillac. 

Channel  Coast: 

Nothing  to  report. 

III.  North  Sea,  Norway,  Northern  Waters: 

North  Sea: 

Two  SLM/J-mines  were  cleared  north  of  Ameland  and  Vlie- 
land. 

Group  A  of  32nd  Minesweeper  Flotilla  had  an  engagement  with 
enemy  PT  boats  at  0210.  Three'  attacks  were  repulsed  and  one 
boat  was  set  on  fire.  At  0220,  Group  A  of  34th  Minesweeper 
Flotilla  was  bombed  without  damage.  At  0520,  4  British  fight- 
ers unsuccessfully  attacked  the  convoy  of  the  steamer  KATJA 
LAU  off  Hook  van  Holland. 

Ccnvcy  1153  from  Hook  to  the  Elbe  entered  Helder  at  noon.  Dur- 
ing an  attack  by  6  Mustangs,  3  of  the  enemy  planes  were  shot  down 
by  our  fighter  escort.  At  1500,  60  British  planes  approaching 
the  convoy  at  Helder  were  driven  off  over  the  sea  by  our  fighter 
escort.  When  the  convoy  left  Helder  a^ain  after  2030,  40  planes 
again  approached  and  attacked  with  bombs  and  gunfire.   At  least 
5  enemy  planes  were  shot  down  by  anti-aircraft  fire,  We  suf- 
fered no  damage.   For  details,  see  teletype  2211. 

-242-  CONFIDENTIAL 


CONFIDENTIAL 
18. Jul e  1943 
Sunday 

No  other  reports  of  importance  have  been  received, 

Norway,  Northern  Waters: 

1,    Enemy  Situation: 

Seventeen  planes  were  detected  over  the  North  Sea 
but  no  planes  were  observed  operating  in  the  area  of  the  Ice- 
land Squadrons.  A  Russian  submarine  was  detected  on  the  Arctic 
Coast. 

Our  air  reconnaissance  sighted  7  patrol  boats  on  course  270° 
in  the  Denmark  Strait. 

2-    Own  Situation: 


On  16  Jul.,  the  Cape  Romanov  Battery  came  under 
fire  from  the  enemy  batteries  on  the  Tibachi  Peninsula.  No 
damage  was  caused.  At  1700  on  17  Jul.,,  the  Vardoe  Battery 
f i red  on  surface  forces  which  had  been  located  at  a  distance 
of  about  12  kilometers  but  was  unable  to  sight  them.  At  2015, 
one  of  our  convoys  was  unsuccessfully  attacked  by  an  enemy 
submarine  with  three  torpedoes  in  the  Basfjord.   On  the  evening 
of  16  Jul.,  submarine  chaser  UJ  "1209"  was  unsuccessfully 
attacked  in  the  Basfjord  by  a  plane  with  two  torpedoes.  About 
the  same  time,  the  Norwegian  motorship  RA155TER  (235  BRT)  struck 
a  mine  and  sank  in  the  Vestfjord  declared  area. 

The  escort  service  escorted  41  ships  to  the  north  and  27  ships 
to  the  south.  Eight  ships  were  held  up  due  to  lack  of  escort 
or  lack  of  pilots,, 

Naval  Command,  Norway  has  forwarded  a  report  from  Admiral, 
Arctic  Coast  to  the  effect  that,  during  a  submarine  atiack  on 
our  patrol  boat  "6103"  three  torpedoes  fired  from  the  open 
sea  were  diverted  by  depth  charges  dropped  by  one  of  our  planes 
and  thus  missed  their  target. 

Admiral,  Arctic  Coast  has  reported  further  details  on  the  raid 
in  the  Kongsfjord.   For  copy,  see  teletype  I6l0«  ildmiral 
Arctic  Coast  plans  to  carry  out  a  large-scale  operation  through- 
out the'  Nordkyn/Vardoe  area  in  cooperation  with  the  Security 
Service,   the  Intelligence  Division,  Army  and  Air  Force,  as 
soon  as  the  vessel  situation  permits • 

IV.   Skagerrak.  Baltic  Sea  Entrances,  Baltic  Sea : 


-243-  CONFIDENTIAL 


CONFIDENTIAL 
18  Jul.  1943 
Sunday 

1.  Enemy  Situ?.tion: 

No  important  changes  wore  observed  in  Kronstadt 
Bay, 

2 .  Own  Situat ion : 

In  the  area  of  Commanding  Admiral,  Defenses  East, 
17  vessels  were  engaged  in  channel  sweeping.,  Two  troop  trans- 
ports, 3  submarines,  &nd  4  steamers  were  escorted.  The  large 
minesweeper  Blln  cleared  H   OH:* -mines  from  the  eastern  end  of 
the  Skagen  barrage. 

In  the  area  of  Admiral,  Baltic  Countries,  the  "Koenigsberg" 
Battery  sustained  a  direct  hit  on  the  fire  control  statdjpn  and 
suffered  c asualt ies  e 

Commander,  Minesweepers  East  reports  that  mi.ne sweeping  has 
been  continued  in  the  Irben  Narrows  but  no  mines  have  been 
cleared.  Two  tankers,  3  troop  transports  and  1  hospital  ship 
were  escorted  in  the  central  and  eastern  Baltic  Sea, 

V,  Submarine  Warfare: 

-'-•    Enemy  Situation: 

The  U.S.  Navy  Department  has  announced  that  2 
submarines  were  certainly  sunk,  4  very  probably,  and  4  more 
fairly  probably  by  planes  from  a  U.S.  aircraft  carrier,  co- 
operating with  U.S.  destroyers  in  defense  of  two  convoys  in 
the  Atlantic e  Forty-one  members  of  the  crews  of  three  of 
our  submarines  were  rescued™ 

This  apparently  refers  to  the  convoy  operation  in  May  of  this 
yeir. 

2.   •  Own  Situation: 

'A   submarine  sank  a  steamer  of  7,3&9'  BRT  south  of 
Lagos,  No  other  reports  have  been  received,, 

VI.  Aerial  Warfare: 

British  Isles  and  Vicinity: 

In  the  area  of  the  3rd  Air  Force,  110  planes  were  in 


-244-  CONFIDENTIAL 


CONFIDENTIAL 
18  Jul.  1943 
Sunday  -  • 

operation  in  the  west  and  6  planes  in  the  iiediterranean.  Only 
a  few  enemy  planes  were  observed  entering  occupied  western 
territories  during  the  day.  In  regard  to  the  attacks  on  our 
convoy  near  Den  Helder,  see  Situation  North  Sea,   In  the  after- 
noon, a  few  bombs  were  dropped  in  the  Abbeville  area.  In  the 
night  of  18  Jul.,  the  enemy  made  11  nuisance  raids  in  western 
Germany  strafing  locomotives  and  an  express  train  near  Hannover « 

Mediterranean  Theater: 

Our  air  force  made  photographic  reconnaissances  of  Malta 
and  Port  Said  on  17  Jul,  and  of  the  coast  from  Licata  to 
Augusta  on  18  Jul*  It  is  reported  that  1  destroyer  and  two 
ships  for  11,000  BRT  were  sunk  and  10  ships  for  49,000  BRT 
seriously  danaged  or  probably  sunk  as  a  result  of  our  attacks 
in  the  Syracuse  area  on  the  night  of  16  Julc  Reports  so  far 
received  state  that  2  ships  totalling  10,000  BRT  were  damaged 
during  the  night  operation  of  17  Jul. 

No  re~x)rts  on  enemy  attacks  in  the  Italian  area  have  been  re- 
ceived. 

Eastern  Front; 

On  17  Jul,,  120  enemy  planes  were  shot  down  on  the  Army 
front,.  Nothing  else  to  report, 

VII o  Warfare  in  the  Mediterranean  and  Black  Sea: 

1.    Enemy  Landing  in  Sicily: 

Situation  on  Land: 

The  enemy  pressure  on  the  eastern  flank  of  our 
position  continues.  Enemy  thrusts  against  the  central  part 
of  our  front  were  repulsed.  The  western  flank  has  withdrawn 
according  to  plan.  Enemy  landing  activities  continues  to  con- 
centrate on  the  eastern  coast  of  the  island.   The  airfields 
at  Gela  and  Licata  are  strongly  occupied,  and  are  being  further 
improved. 

Situation  at  Sea: 

Photographic  interpretation  of  17  Jul„  shows  a 
large  number  of  ships  in  port  at  Augusta  and  Syracuse.  Twr 
cruisers,  1  -anti-aircraft  cruiser,  3  destroyers,  27  big  land- 
ing boats  and  6  freighters  were  at  Augusta  and  9  other  landing 


-245-  CONFIDENTIAL 


CONFIDENTIAL 
18  Jul.  1943 
Sunday 

boats  off  the  harbor o  Two  big  troop  transports,  one  of  them 
.  apparently  damaged,  4  LST  with  motor  vehicles  on  board,  1 

tanker,  34  big  landing  boats,  10  (apparently)  LCTs  and  8 
.  freighters  were  identified  at  Syracuse  and  6  LST  off  the  har- 
bor. In  the  early  morning  hours  of  18  Jul,,  8  merchantmen 
and  10  destroyers  on  course  330°  and  2  merchantmen  and  2 
destroyers  on  a  northerly  course  were  sighted  in  the  sea  area 
off  Syracuse.  There  were  3  more  destroyers  on  a  northerly 
course  northeast  cf  Cape  Passero0  Naval  targets  in  the 
Syracuse  area  were  attacked  by  strong  German  air  formations 
during-  the  night  cf  17  Jul0  One  battleship,  probably  the 
MALAYA,  2  cruisers,  20  destroyers  and  12-15  freighters  were 
identified  southeast  of  Catania,, 

•According  to  photographic  interpretation,  the  following  ships 
were  in  port  at  La  Valet: a  on  the  evening  of  17  Jul:   RODNEY 
and  NELSON,  2  aircraft  carriers  of  the  ILLUSTRIOUS  type,  3 
monitors;  4  cruisers,  20  destroyers,  1  escort  boat,  8  freighters, 
.  1  tanker,  1  transport,  7  LSTs  carrying  motor  vehicles,  25  LCI, 
29  big  landing  boats  etc.   One  WARSPITE-class'  ship  was  in  the 
Marsa  Scirocco  Bay,  Two  big  troop  transports,  2  LST  and  9 
big  landing  boats' as  well  as  other  vessels  were  observed  off 
La  Valetta.   Thus,  the  heavy  vessels  of  Task  Force  H,  4  battle- 
ships and  2  aircraft  carriers  were  identified.  No  new  resorts 
have  come  in  on  the  whereabouts  of  the  2  KING  GEORGE-class 
battleships  last  observed  at  Bone  on  12  Jul. 

According  to  information  received  by  the  Japanese  'Military 
Attache,  Rome  from  a  Swedish  source,  there  ate  4  -  5  U.S. 
battleships,  including  one  of  the  newest  type,  in  the  Med- 
iterranean. Two  of  them  came  via  the  Suez  Canalc  The  number 
of  British  naval  forces  was  given  as  6  battleships,  #  carriers, 
l6.Ar-type  cruisers  and  28  B-type  cruisers, 

.No  new  information  was  obtained  on  the  morning  of  18  Jul.  In 
.  the  afternoon,  about  25  ships  including  10  large  ones,  were 
sighted  15  miles  south-southeast  of  Augusta  and  8  warships 
sailing  north  25  miles  southeast  of  Catania.   Furthermore,  1 
cruiser  and  7  destroyers  sailing  north  were  sighted  8  miles 
south  of  Cape  Spartivento  presumably  as  protection  against 
Taranto . 

German  Naval  Command,  Italy  reports  that  the  Italian  cruiser 
SCIPI0NE  AFRICAN0  is  transferring  to  Tranato  in  order  to  form 
a  group  of. light  forces.   Orders  have  also  been  issued  to  put 
the  two  CAVOUR-Class  battleships  into  service  to  reinforce  the 
Taranto  defenses.  Naval  Staff  had  so  far  not  heard  that  these 


-246-  CONFIDENTIAL 


CONFIDENTIAL 
18  Jul.  1943 
Sunday 

vessels  had  boon  put  out  of  service.  It  had  only  been  advised 
some  time  ago,  of  an  exchange  of  crews  between  the  heavy  ships 
and  the  destroyer  formations. 

As  only  two  PT  boats  will  be  operational  in  time,  German  Naval 
Command,  Italy  plans  for  the  next  operation  and  subsequent 
transfer  to  Cotone  to  take  place  not  before  19  Jul, 

In  regard  to  the  supply  of  Sicily,  Commanding  General,  •  ^rmed 
Forces  South  reported  to  Supreme  Command,  ^rmed  Forces,  Chief 
of  Ops.  Staff  that  the  total  daily  transport  performance  of 
up  to  2,000  tons  considerably  exceeds  requirements  and  could 
be  used  for  piling  up  stocks.  Group  South  considers,  however, 
that  in  order  to  maintain  the  ferry  traffic  in  the  Straits  of 
Messina  and  the  railroad  traffic  on  the  Calabrian  coast  as  well 
as  to  protect  the  small-vessel  coastal  traffic,  it  is  urgently 
necessary  for  the  air  defense  to  be  strongly  reinforced,  for 
the  coast  defenses  in  the  Straits  of  Messina  and  on  the  east 
and  west  coasts  of  Calabria  to  be  reinforced  by  German  coastal 
batteries,  by  assembly  of  German  emergency  forces  in  Calabria, 
the  provision  of  large  size  truck  space  and  the  dispatch  of 
road  construction  battalions  and  railway  maintenance  companies. 
Commanding  Admiral,  Armed  Forces  South  believes  that  the  supply 
of  the  Sicily  bridgehead  can  probably  be  continuously  ensured 
if  the  above  measures  are  quickly  and  comprehensively  effected 
but  that  there  is  no  guarantee  that  the  supply  performance  will 
meet  the  demand  because  of  the  enemy's  superiority  at  sea  and, 
at  the  moment,  also  in  the  air.  For  copy  of  the  report  as  per 
1/Skl  20220/43  Gkdos,  see  War  Diary  Part  C,  Vol,  XIV. 

2„    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

At  0315,  a  convoy  of  38  freighters  and  2  tankers 
left  Gibraltar  for  the  Mediterranean.  Between  0430  and  0600 
a  convoy  of  55  ships  including  about  9  escort  vessels,  was  pas- 
sing through  the  Straits  of  Gibraltar,  Seven  U.S.  steamers 
from  this  formation  put  in  to  Gibraltar,   A  large  convoy  of  94 
freighters  and  1  tanker  with  4  destroyers  and  6  corvettes,  on 
an  easterly  course,  were  reported  from  Cape  Tres  Forcas  at  1900, 
This  was  apparently  the  two' above-mentioned  convoys  combined. 
This  means  that  another  332,000  BRT  of  freight  space  has  been 
brought  into 'the  Mediterranean.  As  about  20,000  BRT  is  reported 
to  have  left,  Naval  Staff,  Naval  Intelligence  Division  estimates 
the  total  transport  space  in  the  Mediterranean  at  655  ships 
totalling  3,830,000  BRT- including  6l  troop  transports  for  846,000 
BRT;  57  tankers  for  375,000  BRT  and  537  freighters  for  2,609,000 
BRT,  2  Landing  boat  transports  which  entered  Gibraltar  from  the 


-247-  CONFIDENTIAL 


CCI-IFIDEKTIAL 
IS  Jul.  1943 
unda 

Mediterranean  in  the  for.jnocn  left  again  for  the  east  in  the 
evening  together  Kith  2  destroyers,  According  to  an*  Intel- 
ice'  report  from  Gibraltar,  British  battalions,  including 
about  1,000  commando  troops  r  waiting  there  to  embark  for 
Sicily. 

::rding  to  a  sighting  report  of  17  Jul,,  the  number  of  ships 
at  5izerta  has  dropped  cinsiderably. 

On  the  afternoon  of  17  Jul.,  submarines  were  reported  west  of 

Civitavecchia  and  northeast  of  Bastia,  on  IS  Jul.,  southeast 

of  Crotone,  west  of  Leghorn  and  north  of  Cape  Ccmino  (Sardinia)* 

On  the  evening  of  17  Jul,,  strong  traffic  "was  observed,  in  the 
Eastern  Mediterranean,  off  the  Kile  delta.  At  1745,  11  outgoing 
m  :       n  including  some  large  ones,  were  reported  off  Alex- 

andria.  This  convoy  was  detected  on  a  northwesterly  course 
north  west  of  Benglai  on  the  afternoon  of  IS  Jul. 

According  to' photographic  reconnaissance,  there  were  1  Greek 
armored  ship,  2  escort  boats,  13  smr.il  war  vessels,  1  hospital 
ship,  4  troop  transports,  3  tankers  and  24  freighters  in  Pert 
Said  at  noon  of  18  Jul.  A  big  reduction  in  freighter  and 
transport  space  as  compared  with  2  Jul,  is  evident.  This  ap- 
parently confirms  the  vie-     3erman  Naval  Command,  Italy  that 
shipments  for  Sicily  have  "-also  been  coming  from  the  east. 

According  to  the  Swedish  information  r.    red  by  the  Japanese 
Military  Attache,  Rome,  as  mentioned  above,  two  Polish  divi- 
sions have  been  transferred  from  Iran  to  northern  Syria  and 
fifteen  Indian  divisions  arc  to  be  brought -from  India  to  the 

literranean  theater.  One  British  and  one  mixed  Greek/ 
Yugoslav  division  are  said  to  be  in  Cyprus. 

3 .    Own  Situation  in  Cth..r  Farts  of  Kg literranean.  5,'. 
Tr  report  Situation: 

An  .a; my  air  attack  on  Naples  in  the      noon  of 
17  Jul.  caused  heavy  damage  to  railway  inst     ions  and  supply 
facilities,  fa.  town  was  again  attacked  during  the  night  ;f 
17  Jul.  and  on  1$  Jul. 

Torpedo  boat  TA  "11",  5  motor  minesweepers  and  2  corvettes  were 
on  duty  in  the  escort  service.  Two  z  re  escorted  in 

the  Sardinian  traffic  and  1  steamer  in  the  Sicilian  traffic. 


_24S~  f::z;:::..i 


CONFIDENTLY 
18  Jul.  1943 
Sunday 

Group  West  reports  that  A  to  A  is  planned  for  the  19th  mine 
operation.   Two  naval  landing  craft  left  Toulon  for  Bastia 
together  with  3  barges.  The  transfer  of  the  Naval  Artillery 
Battalion  687  from  the  area  of  Commanding  General,  Armed 
Forces  South  began  on  17  Jul.  and  will  be  completed  by  19 
Jul, 

The  removal  of  the  "Gneisenau"  Battery  was  begun  at  O515o 

Rear  Admiral  Weichold  has  suggested  the  formation  of  a  parti- 
san organization  in  the  Italian  territories  which  might  per- 
haps be  occupied  by  the  enemy  in  the  course  of  future  develop- 
ments. As-  this  would  be  a  matter  for  Armed  Forces  High  Com- 
mand, Foreign  Intelligence  Division,  it  is  planned  to  make  a 
report  to  Armed  P'orces,  High  Command,  Operations  Staff. 

4#    Naval  Group .  South; 

Aegean: 

Enemy  Situation: 

According  to  an  Intelligence  report  from  Swiss 
diplomatic  circles,  the  landing  in  Sicily  is  of  only  secondary 
importance,,  The  main  attack  is  expected  to  be  made  soon  on 
Crete,  Rhodes  and  the  southwest  coast  of  Greece,  There  are 
alleged  to  be  very  strong  British  Air  Forces  concentrated  be- 
tween Bengai  and  Bardia  and  several  hundred  airfields  in  op- 
erational condition.  According  to  an 'Italian  report,  there 
was  a  submarine  5  miles  west  of  Naxos<, 

Own  Situation: 


The  BARLETT/.  and  the  M0R03INI  left  Piraeus  for 
Taranto  by  order  of  the  Italian  Naval  Staff,  Naval  Staff  has 
no  further  information  on  this  move.  Otherwise  there  is  nothing 
to  report. 

Operations  Staff,  Armed  Forces  Quartermaster  Division  has  in- 
structed Armed  Forces  High  Command,  Supply  and  Transportation 
Office  of  the  Armed  Forces  Overseas  to  examine  Naval  Staff's 
suggestion  in  regard  to  switching  the  supply  traffic  from 
Greece  to  the  eastern  route,  in  order  to  establish  to  what 
extent  the  switch  over  from  the  Adriatic  to  the  eastern  route 
is  practicable  with  special  consideration  of  the  limit  to 
which  the  Varna -Dardanelles  traffic  can  be  increased,  the 


-249-  CONFIDENTIAL 


CONFIDENTIAL 
18  Jul.  1943 
Sunday 

the  establishment  of "a  Trieste— Valono  traffic  line  and  the 
transport  of  bauxite. 

Black  Sea: 

1st  PT  Boat  Flotilla  made  no  enemy  sightings 
during  operations  south  of  Anapa  in  the  night  of  17  Jul.  but 
noted  strong , enemy  air  activity,,   In  bombing  attack  which  took 
her  by  surprise,  PT  boat  S  "72"  was  slightly  damaged  by  frag- 
ments.      ..    -u.  : 

Naval  artillery  lighter  MAL  "8"  was_  repeatedly  engaged  by 
enemy  motor  gun  boats  in  the  .patrol  section  Temrjuk  Bay,  No 
details  are  yet  available c  For  the  night  of  18  Jul.,  it  is 
planned  for  3  boats  of  1st  PT  boat  Flotilla  to  operate  in 
the  Azov  Sea  and  3  boats  of  11th  PT  Boat  Flotilla  east  of 
Theodosia. 

At  2223  on  18  Jul.,  submarine  U"18"  unsuccessfully  attacked 
an  enemy  submarine  21+  miles  southwest  of  Yalta  with  a  salvo 
of  three  torpedoes*  The  reason  for  the  miss-is  not  known. 

The  Constantza-Sevastopol  convoy  was  repeatedly  attacked  by 
enemy  planes  off  the  coast  of  the  Crimea,   Other  air  attacks 
were  made  in  the  evening  of  17  Jula  on  Mariupol  without  caus- 
ing damage.   In  the  morning  of  17  Jul.,  the  fishing  harbor, ' 
dock  yards  and  town  of  Taganrog  were  bombarded  by  the  enemy# ' 
Minelaying  by  an  enemy  plane  was  observed  in  the  Danube  area,, 

Supply  and  ferry  traffic  was  carried  out  according  to  plan, 

VIII o  Situation  in  East  Asia: 

Nothing  to  report 0 


-250-  CONFIDENTIAL 


CONFIDENTIAL 
19  Jul.  1943 

Items  of  Political  Importance. 

No  information  of  naval  interest  have  been  received. 

Conference  on  the  Situation  with  Chief  of  Naval  Staff : 

Within  a  Highly  Restricted  Circle : 

•*• •    Position  of  the  Army : 

In  the  northern  sector  of  the  operation  "Citadelle" 
area,  our  forces  have  withdrawn  practically  to  their  original 
line,  A  defensive  battle  on  a  large  scale  has  developed  in 
the  Orel  area.   The  enemy  has  also  extended  the  offensive  to 
the  Donez  and  Miv.s  sectors.   The  enemy's  losses  in  materiel 
and  personnel  are  so  great  that  it  may  be  hoped  that  the  pur- 
pose of  the  operation  may  yet  be  achieved,  iioreover,  at  the 
suggestion  of  Minister  Speer,  the  Fuehrer  has  ordered  that 
the  eastern  fortification  line  is  to  be  built  up  in  concrete 
for  the  winter.  Army  General  Staff  was  of  the  opinion  that 
field  positions  were  preferable  since,  apart  from  difficulties 
in  regard  to  materials  and  transport,  we  would  not  have  suf- 
ficient forces  to  man  large  permanent  positions  covering  the 
entire  area. 

II.  Chief,  Naval  Staff  has  forwarded  his  warmest  congratu- 
lations to  the  Italian  Commanding  Admiral,  Submarines,  Admiral 
Legnani'on  the  recent  important  successes  of  the  Italian  sub- 
marines,, 

III,  Chief t  Naval  Staff  reported  on  the  course  and  the  results 
of  the  conferences  with  the  Fuehrer  at  Fuehrer  Headquarters 

in  accordance  with  memorandum  as  per  l/Skl,  Gkdos  Chefs,  in 
War  Diary  Part  C,  Vol.  VII. 

In  regard  to  the  Italian  problem,  our  own  suggestion  for  org- 
anization of  the  command  coincided  with  similar  step  by 
Armed  Forces  High  Command,  Operations  Staff*  The  Fuehrer 
has  meanwhile  gone  to  Northern  Italy  in  order  to  discuss  this 
extremely  delicate  matter  in  person  with  the  Duce.  Chief, 
Naval  Staff  has  summoned  Captain  Grossi  to  Berlin.  He  is 
anxious,  if  possible,  to  form  a  picture  of  certain  leading 
personalities  of  the  Italian  Navy  who  might  possibly  come  to 
bear  in  the  case  that  the  Fuehrer's  talk  vrith   the  Duce  leads 
to  a  change  in  the  command  of  the  Italian  Armed  Forces.  Chief 
Naval  Staff  is  personally  very  much  afraid  that  the  deteriora- 
tion in  the  general  Italian  attitude  has  already  gone  too  far; 
in  any  case,  the  situation  must  be  regarded  as  extremely  grave. 

-251-  CONFIDENTIAL 


CONFIDENTIAL 
19  Jul.  1943 

The  Fuehrer's  discussion  -with  the  Duce  is  therefore  of  great 
historic  importance.  In  these  circumstances,  it  is  not  sur- 
prising that  the  Italian  High  Command  now  systematically  re- 
jects all  blame  and  criticism  and  attributes  all  failures  to 
the  inadequacy  of  German  support.  Even  the  Duce's  reply  to 
Commander-in-Chief  Navy's  suggestion  regarding  the  employ- 
ment of  the  Italian  naval  forces  was  already  along  these 
lines. 

After  discussion  of  the  Spanish  and  Japanese  questions,  Chief 
Naval  Staff  obtained  the  Fuehrer's  approval  to  the  mines 
with  new  firing  devices  being  used  simultaneously  by  the 
Air  Force  and  the  Navy.  The  Fuehrer  raised  ohe  objection 
that,  if  the  Air  Force  use  these  mines,  some  may  be  dropped 
on  land  and  fall  into  the  hands  of  the  enemy,  and  this  un- 
sweepable  t^pe  cf  mine  might  then  seen  be  used  against  our- 
selves. A  corresponding  order  has  meanwhile  been  issued  by 
High  Command,  Army. 

Special  Items: 

I.  On  19  and  20  Jul.,  a  meeting  of  Navy  Inspectors  will 
be  held  at  Supreme  Command,  at  which,  after  hearing  the  In- 
spectors reports  on  20  Jul.,  Commander-in-Chief  will  speak 
on  the  general  situation. 

II.  In  accordance  with  the  directive  of  Chief,  Naval  Staff 
(see  War  Diary  16  Jul0)#  Bureau  of  Naval  Armement  and  Naval 
Staff,  Naval  Intelligence  Division  will  be  asked  for  a  state- 
ment on  the  following  questions: 

1,  To  what  extent  is  the  Japanese  Kwantung  Army  capable 
of  supplying  itself  from  the  available  hinterland  (Manchukuo, 
Korea,  North  China)  in  case  operational  warfare  is  opened  a- 
gainst  Soviet  Russia  (Siberia)? 

2.  Whit  supplies  must  necessarily  be  transported  by 
sea  and  what  is  the  minimum  shipping  space  required  for 
this  purpose? 

III ,  Enemy  Situation  Report  No .  14/43  of  15  Jul . ,  compiled 
by  Naval  Staff,  Naval  Intelligence  Division  contains  no  new 
information.  For  Copy  as  per  l/3kl  20348/43,  Gkdos  see  War 
Diary,  File  "Reports  of  Naval  Staff,  Naval  Intelligence  Di- 
vision on  the  Enemy  Situation," 

IV,  Armed  Forces  High  Command,  Intelligence  Division, 


-252-  CONFIDENTIAL 


CONFIDENTIAL 
.19  Jul.  1943 

Secret  Intelligence  Section,  Naval  Liaison  submitted  an  ex- 
tremely valuable  report  obtained  by  an  agent,  assigned  by- 
Intelligence  Division,  Secret  Intelligence  Station  Bergen, 
from  an  expert  source,  on  new  British  anti-submarine  devices. 
Naval  Staff,  Submarine  Division  is  going  into  the  matter  as 
practical  counter-measures  must  be  taken  immediately.  It 
concerns  an  invention  by  the  Norwegian  engineer  Dahl  and  the 
American  Merill.  Eight  frigates  were  equipped  with  the  new 
device  in  mid-Jun.  1943  at  a  dockyard  on  the  Tyne,  after  it 
had  already  been  installed  in  eight  or  ten  Grimsby  trawlers. 
Twenty-seven  or  twenty-eight  of  our  submarines  are  said  to 
have  been  sunk  in  Jun,  by  means  of  this  apparatus.  Using  a 
radio-bearing  device  which  by  means  of  a  quartz  crystal 
oscillater,  indicates  the , depth  and  the  sjmchronous  radiation 
recording  size  of  the  mass.  Dahl,  in  cooperation  with  Merill, 
has  developed  a  measuring  apparatus  which  will  perform  the 
same  function  under  water  and  record  the  depth  and  distance 
of  a  submarine.  On  the  basis  of  the  measurement  obtained,  a 
second  device  -  known  as  "Sprengschweber"  ( trans 1.  note: 
German  translation  of  an  unknown  English  word.  Explosive 
float?)  -  is  then  approached  under  water  to  the  detected  sub- 
marine until  it  comes  within  its  magnetic  field  and  is  thus 
finally  drawn  on  to  the  target  and  exploded. 

Situation  on  19  Jul,  1943: 

I.  Warfare  in  Foreign  Waters: 

1#     Enemy  Situation: 

A  submarine  warning  was  issued  on  17  Jul.  for  the 
area  21°56J  south  17?°1£«  west. 

2#     Own  Situation: 

No  reports  have  been  received  from  our  vessels 
in  foreign  waters. 

All  German  ships  in  foreign  waters  have  been  informed  on  the 
enemy  situation  by  radiogram  1327o 

II.  Situation  in  the  West  Area: 
1.     Enemy  Situation: 

No  less  than  seventy-two  planes  were  detected 


-253-  CONFIDE:  HAL 


CONFIDENTIAL  . 
19  Jul.  1943 

over  the  Bay  of  Biscay  up  to  15°30'  west.  This  number  is  un- 
usually high,  if  it  is  assumed  that,  as  is  usually  the  case, 
our  stations  picked  up  about  50$  of  the  actual  number  in  op- 
eration, 

British"  vessels  were  detected  at  1250  in  BF  7440,  at  13 13  in   . 
CF  3678,  at  1317  in  CF  3810,  at  1917  in  BF  6761/62,  and  short- 
ly after  midnight  in  BD  3420.  Our  air  reconnaissance  reported, 
at  1030,  13  merchantmen  and  4  escort  vessels,  on  course  290° 
in  CF  6222.  At  0716,  Radio  Intelligence  intercepted  an  urgent 
operational  signal  transmitted  on  the  wave  length  of  the  Brit- 
ish Fleet  by  an  unidentified  British  command  station  via  Gib- 
raltar to  the  Admiralty  and  to  four  unidentified  relay  stations, 
The  signal  probably  indicates  a  position  in  the  eastern  Atlan- 
tic and  was  answered  by  the  Admiralty  at  0822  by  a  short  signal 
of  like  priority  on  two  fleet  wave  lengths  and  by  broadcast, 

2,    Own  Situ  ti on: 

Atlantic  Coast: 

One  ELM/J-mine  was  cleared  off  the  Gironde.  A 
plane  was  observed  to  drop  one  mine  off  Loriont,  Motor  mine-- 
sweeper  M  "4023"  was  fired  on  off  Lorient  probably  by  our  own 
anti-aircraft  guns,  and  sprang  a  leak.    le  is  being  towed 
in.   Destroyer  Z  "32"  has  gone  into  dock  at  rauillac  to  change 
her  propeller.  T.rork  should  be  completed  in  txvo  to  four  days, 

Ilaval  Staff,  Submarine  Division  has  instructed  Commander,  Sub- 
marines Trest  to  request  Air  Comncnder  Atlantic  to  observe  the 
light  enemy  forces  detected  in  BF  71  -  76  during  the  first 
half  of  Jul.  and,  if  possible,  to  check  that  area  for  several 
days  as  far  to  the  west  as  possible,  in  order  to  establish 
whether  the  enemy  makes  a  regular  patrol  or  whether  it  was 
cnly  a  passing  formation,  and  how  strong  the  enemy  forces  are. 
(See  teletype  2245).  ■ 

Channel  Coast:  .  .-  — 

Escort  and  patrol  services  were  carried  out  ac- 
cording to  plan.   No  special  reports  have  been  received, 

III.  North  5c-.,  Norway.  Northern  "fetors: 

North  Sea: 

Seven  ELK/J-mines  were  cleared  off  the  western  and 
eastern  Frisian  islands,  'At  0456,  the  Swedish  steamer  VIDAH 


-254-  CONFIDENTIAL 


CONFIDENTIAL 
19  Jul.  1943 

was  damaged  by  a  mine  explosion  in  AN  8317  <»  The  steamer  was 
beached  near  Terschelling.  At  1510,  patrol  boat  "1417"  and 
tug  BS  "12",  sent  out  to  assist  the  ship  were  set  on  fire  by 
British  planes  and  suffered  heavy  damage  and  casualties,, 
Group  B  of  34-th  Minesweeper  Flotilla  put  out  for  rescue  work 
and  brought  both  vessels  in  to  Den  Helder,  Apart  from  this, 
escort  and  patrol  services  were  carried  out  without  incident. 

Norway.  Northern  Waters : 

1 .  Enemy  Situation : 

Radio  Intelligence  has,  for  the  first  time,  iden- 
tified the  Russian  submarines  S  "14"  and  S  "15",  apparently 
newly  built  vessels  whose  appearance  must  be  reckoned  with  in 
the  near  future.  Twenty-four  planes  were  detected  over  the 
North  Sea  but  no  planes  was  observed  operating  in  the  area  of 
the  Iceland  Squadrons.  Our  air  reconnaissance  sighted  8  mer- 
chantmen on  a  northerly  course  and  4  merchantmen  on  a  south- 
erly course  shortly  before  midnight  of  18  Jul.  off  the  east 
coast  of  Scotland. 

At  1700,  a  FW  200  reported  a  light  cruiser,  on  course  10  , 
at  high  speed,  35  miles  northeast  of  Grimsby. 

2,  Own  Situation: 

At  noon  on  17  Jul.,  two  of  our  patrol  boats  ; 
were  attacked  by  8  enemy  planes  near  Makkaua . .  Four  men 
were  wounded  on  one  Of  the  patrol  boats.   On:  18  Jul.,  sub- 
marine warning  was  reported  at  1332  for  the  approach  to  Fens- 
fjord  and  up  to  Sogneoksen  and  at  2204  near  Kvittingsoey. 
Anti-submarine  hunt  was  started  in  both  ar^as„  At  0640  on  19 
Jul.,  a  submerged  submarine  was  bombed  b.  two  Arados  west  of 
Ryvarden,  without  results  being  observed.  Our  FW-190  planes 
failed  to  make  contact  with  isolated  planes  of  unidentified 
nationality  which  flew  into  the  Bergen  and  Sola  areas  at  noon 
on  18  Jul. 

Tineteen  ships  were  escorted  to  the  north  and  29  ships  to  the 
south. 

IV.   Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea: 

1„    Enemy  Situation: 

No  important  changes  have  been  re  orted  from 


-255-  CONFIDENTIAL 


::::?::r.T:..L 

19  Jul.  1%3 

-nstadt  Bay.  Near  Vaindlo,  three  explosions  were  heard  in 
the  morning  and  one  in  the  afternoon,  and  engine  noises  were 
picked  up  by  ~.  listening  set.  The  presence  of  a  submarine  is 
not  unlikely. 

2 ,    "-y.  -leuaticn : 

Seventeen  planes  were  employed  on  channel  sweeps 
in  the  area  of  Commanding  Admiral,  Defenses  Baltic.  3ix  troop 
transports  and  1  steamer      escorted.  North  of  Fehmarn,  a 
nine  was  swept  by  KHFG-device  at  a  depth  of  28  meters.  A 
coastal-defense  boat  was  eamaged  during  this  cazrr.eion.  The 
large  minesweeper  "11"  continued  clearance  work  in  the-  Skagen 
barrage. 

Three  tankers  were  escorted  in  the  Baltic  Sea  as  well  as  the 
cruiser  Z     to  Swinemuende.  Minesweoping  in  the  Irben 
Narrows  was  continued  without  success,   Ihc  anti-submarine  net 
and  barrage  patrol  in  the  Gulf  of  Finland  were  performed  by 
34  vessels,  as  before.  In  the  evening  the  i  rberhof  comaand 
station  was  bombarded  from  Kronstadt,  Our  batteries  fired  on 
1  tug  with  a  barge  being  escorted  from  Kronstadt  to  Lis  i  -"ess 
and  3  artillery  carriers  sighted  betv.-eer.  Leningrad  and  Kron- 
stadt. Ho  further  observations  could  be  made  because  smoke 
screens  were  put  up  in  In  the  afternoon,  our  form- 

tions  were  unsuccessfully  attacked  first  by  eight  and  then  by 
four  enemy  planes  near  Tytters  island. 

V.    Submarine  Warfare: 

1.       iy  Situation: 


Nothing  to  report. 

2.    Own  Situ~ tier.: 

In  CF  7939  submarine  U  "373 "  sighted  a  3- funnelled 
steamer  on  course  270°  at  a  speed  of  20  knots.  Submarine  U 
"667"  had  to  fight  off  a  Liberator  which  attacked  her  with 
r  -  ~avy  guns,  bombs  and  one  torpedo.  This  is  the  first 
a  trrpedc  attack  on  a  submarir.-     been  observed. 

Submarine  U  "262"  had  twice  to  repels .  an  snemy  attack,  in 
EP  57  and  81  respectively,  but  remained  undamaged. 

Submarine  U  "134"  in  the  Flori:    raits,  w     tacked  at 
night  by  an  airship  and  shot  it  down.  Later,  the  boat  was 
attacked  by  an  enemy  plane.  On  both  occasions,  she  sustained 
damage. 

-256-  ::.::::!.: 


CONFIDENTIAL 
19  Jul.  1943 

VI,  Aerial  Warfare; 

British  Isles  and  Vicinity: 

3rd  Air  Force  had  48  planes  in  operation  in  the  West 
area  and  3  in  the  Mediterranean.  The  attack  by  five  FW  200 
on  the  convoy  of  13  merchantmen  reported  near  Lisbon,  was  un- 
successfulc 

There  were  few  enemy  raids  into  the  'Jest  area  during  the  day 
and  none  during  the  night. 

Mediterranean  Theater: 

Our  Air  Force  attacked  shipping  targets  in  the  Augusta 
area  during  the  night  of  18  Jul.,  sinking  1  freighter  of 
10,000  BRT  and  damaging  4  freighters  and  1  transport.  During 
the  night  of  17  Jul*,  the  Italian  Air  Force  damaged  1  cruiser 
and  1  freighter  and  sank  1  merchantmen  of  12,000  BRT.  It  al- 
so reported  heavy  damage  to  a  freighter  of  10,000  BRT  and  a 
freighter  of  5,000  BRT  as  well  as  hits  on  two  other  merchant- 
men totalling  15,000  BRT  on  the  night  of  18  Jula  Italian 
planes  also  started  large  fires  on  the  Gcla  airfield. 

From  1134  to  1330,  about  400  enemy  planes  attacked  Rome  in 
six  successive  waves.  At  two  airfields,  10  of  our  planes 
were  destroyed  and  22  damaged.   Further  damage  was  caused  to 
the  railroad  stations  and  in  the  eastern  suburbs  as  well  as 
to  the  university  district  of  the  Eternal  City.  In  the  night 
of  19  Jul.,  two  airfields  in  the  Rome  area  were  attacked*  No 
other  enemy  raids  were  rc^xirted  in  the  Italian  area* 

Eastern  Front: 

On  18  Jul.,  76  enemy  planes  were  shot  down  on  the  Army 
front. '  No  reports  have  been  received  from  the  4th  or  5th  Air 
Forces . 

VII,  Warfare  in  the  Mediterranean  and  Black  Sea: 


1.    Enemy  Landing  in  Sicily: 

Position  on  Land: 

Agrigents  and  Empedocle  were  occupied  by  the 
enemy  on  16  Jul.  Since  noon  of  18  Jul.,  enemy  artillery 
activity  along  the  whole  front  has  increased  considerably. 


-257-  CONFIDENTIAL 


i::?r:z:ri.L 
19  Jul.  1943 

The  main  defense  line  runs  south  of  Catania  -  Loon  Forte  -i 
-.ILnena  -  Santa  Catarine  -  west  of  Liculia.  Strong  tank 
thrusts  on  the  center  of  the  front  were  repulsed.  At  0900 
in  enemy  air  att  ack  was  made  on  the  town  and  the  harbor  of 
Ionea  near  Catania.  Indications  arc  that  the  enemy  plans  to 

ke   a  large-scale  "ttack  in  order  to  break  through  to  Catania, 
at  the  sar.3  time  engaging  our  forces  by  an  attack  towards 
Patcrno»  Commanding  General,  Armed  Forces  South  considers 
that  landing  operations  by  parachutists  against  the  deep  left 
flank  are  probable. 

General  Staff,  XIV  Tank  Corps  assumed  the  command  of  the  Ger- 
man formations  in  Sicily  on  IS  Jul. 

Position  at  Sea: 

At  1215,  southeast  of  Catania,  landing  boats  were 
noted  taking  on  cargo  from  large  vessels.  At  0300,  7  ves- 
sels were  sighted  off  Licata  and  20  -  25  vessels  27  miles 
south  of  Licata  on  an  unspecified  course.   In  the  night  of  18 
Jul.,  the    -ere  3  motor  gun  boats  in  the  Straits  of  2'Iessina0 
One  of  then  was  set  on  fire  by  our  anti-aircraft  guns. 

.according  to  a  report  from  Naval  . attache,  Rome,  the  Itilian 
Navy  Ministry  states  that,  in  the  disgraceful  evacuation  of 
Catania,  196  torpedoes,  including  112  Eto-type,  fell  into  the 
ads  of  the  enemy  -  apparently  intact e 

Italian  PT  boats  report  a  torpedo  hit  on  a  steamer  of  10,000 
BHT  off  /.ugusti  on  the  night  of  17  Jul. 

3rd  and  7th  PT  Boat  Flotilla  left  Saljrno  with  six  boats  for 
operations  off  the  east  coast  of  Sicily  and  subsequently  trans- 
ferred to  Crotonc 

According  to  photographic  reconnaissance,  at  1840,  there  were 
1  monitor,  1  anti-aircraft  cruiser,  3  destroyers,  2  big  trans- 
ports, 19  freighters,  5  escort  vessels,  1  minesi   oer  and  a- 
bcut  40  landing  boats  at  Augusta.  Fiftj'-  miles  southwest  of 
Licata,  3  cruisers,  2  destroyers  and  allegedly  3  aircraft 
cr^rricrs  were  sighted  at  1750  on  a  westerl3r  course.  At  the 
same  time,  another  aircraft  carrier  and  2  battleships  as  well 
as  several  cruisers  and  destroyers  were  noted  at  La  Valetta. 

No  action  reports  have  come  in  from  our  own  or  the  Italian 
submarines. 


-253-  CCTIDEKTIAL 


CONFIDENTIAL 
19  Jul.  1943 

2*    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

'  In  Gibraltar  at  1300,  7  destroyers,  9  corvettes,  4 
transports,  44  freighters,  12  tankers  and  many  small  vessels 
were  visible. 

No  further  reports  have  been  received  on  the  big  convoy  sighted 
on  the  evening  of  IS  Jul.  near  Tres  Forcas.  Oran  and  Algiers 
are  assumed  to  be  the  ports  of  destination*  In  the  forenoon, 
there  were  5  freighters  off  Bone  and  2  destroyers  were  on  a 
westerly  course  20  miles  northwest  of  Bizcrtac 

Radio  Intelligence  observed  strong  reconnaissance  activity 
over  the  Tyrrhenia  Sea  up  to  the  Gulf  of  Genoa  and  intercepted 
numerous  reconnaissance  reports  from  the  Corsica  -  Mainland' 
area*  On  IS  Jul*,  a  submarine  was  sighted  west  of  Nettunia* 
On  19  Jul.,  submarine  positions  were  reported  between  0735  and 
1530  southeast  of  Maddalena,  west-southwest  of  Civitavecchia, 
south- southwest  of  La  Spezia  and  12  miles  north  of  Porto  Vecchio, 

In  the  eastern  Mediterranean,  22  steamers,  3  destroyers  and' 
&  guard  vessels,  sailing  west  20  miles  north  of  Sidi  Barani, 
were  detected  by  our  reconnaissance* 

3»    Own  Situation  in  Other  Parts  of  the  Mediterranean  - 
Sea  Transport  Situation: 

An  enemy  air  attack  on  Rome  from  1110  to  1410 
caused  heavy  damage  to  the  Littorio  and  Ciampino  airfields  and 
minor  damage  to  the  railway  stations*  At  1845  an  enemy  air 
attack  was  made  on  Bastia " causing  considerable  damage  to 
buildings  near  the  harbor* 

Torpedo  boat  TA  "11",  5  motor  minesweepers,  2  Italian  torpedo 
boats  and  2  corvettes  were  engaged  in  escort  traffic*  Three 
steamers  were  escorted  including  one  from  Sicily  to  Italy,, 
Ihe  transport  submarines  Romolo  and  Reno  are  engaged  in  carry- 
ing supplies  to  Sicily. 

The  execution  of  mine  task  H"6  a  was  postponed  by  twenty-four 
hours  because  of  bad  weather. 

4*    Area  Naval  Group  South: 

Aegean: 

According  to  an  Intelligence  report  of  17  Jul*, 
from  an  unchecked  Turkish  source,  an  action  against  the 


-259-  CONFIDENTIAL 


CONFIDENTIAL 
19  Jul.  1943 

Dodecanese,  or  Crete  or  both  is  imminent.  Traffic  bcowcen 
Cyprus  and  Syria  is  said  to  have  increased  greatly  since  17 
Jul„  General  Monkis  is  to  assume  command  of  the  partisans  in 
Crete  and  will  land  on  the  island  by  parachute. 

Own  Situation: 

Nothing  to  report. 

'  -      Black  Sea: 

Er.^ .•..;-  Situation: 

Nothing  to  report. 

C-.-.t.  fituaticn: 

In  the  night  of  18  Jul.,  neither  the  1st  PT  Boat 
Flotilla  in  the  Azov  Sea  nor  the  11th  FT" Boat  Flotilla  east 
of  Theodosia  made  contact  with  the  enemy,  The  latter  flotil- 
la took  unsuccessful  action  against  an  -:"--".y  submarine  reported 
"by  submarine  U  "IS"  south  of  Theodosia  Bay,  For  the  night  of 
19  Jul.,  it  is  planned  for  3  boats  of  1st  PT  Boat  Flotilla  to 
operate  in  the  area  southeast  of  I"       and  3  boats  of  11th 
PT  Boat  Flotilla  east  of  Theodosia.        :r  observation 
buoy  will  be  placed  43°551  North  3^°20'  East, 

Two  mines  were  cleared  during  minesweeping  in  the  lower 
Danube.  The  dropping  of  five  nines  was  again  observed  in  the 
night  of  18  -  19  Jul.  '  Shipping  traffic  is  still  forbidden* 

u|  Ly   .1  ferry  traffic  was  carried  out  according  to  plan 
and  without  incident,, 

III.  Situation  in  East  Asia: 

3 thing  to  report. 


-26Q-  IDENTLX 


CONFIDENTIAL 
20  Jul.  1943 

Items  of  Political  Importance 

According  to  information  received  from  a  pro-Axis  diplomatic 
source,  statements  by  the  Argentine  Foreign  liinister  leave 
little  doubt  that  relations  with  the  Axis  powers  will  be 
broken  off . 

Conference  on  the  Situation  with  Chief,  rlaval  Staff: 

I.    Add  to  19  Jul.: 

In  regard  to  Naval  Staff's  directive  for  a  submarine  to  be 
assigned  to  check  on  the  heavy  shipping  traffic  northeast  and 
north  of  Iceland,  (see  Nar  Diary  11  Jul.),  Group  North  Fleet 
suggested  that,  in  view  of  the  difficulty  of  the  mission  dur- 
ing the  bright  summer  nights  and  also  on  the  limited  recon- 
naissance possibilities,  and  in  order  to  avoid  long  approaches, 
outgoing  boats  of  Commanding  Admiral,  Submarines,  with  com- 
manders experienced  in  anti-convoy  operations  in  areas  of  air 
threat,  should  be  assigned  to  this  task  whenever  opportunity 
offered. 

Chief,  Naval  Staff  instructed  that  the  operation  as  ordered 
must  be  adhered  to  as  it  is  important  to  obtain  a  clear  picture 
of  enemy  ship  movements  and  possible  enemy  plans  in  the  area 
north  and  northeast  of  Iceland  by  continuous  reconnaissance 
over  a  long  period. 

Naval  Staff,  Submarine  Division  was  asked  to  examine  the  pos- 
sibility of  additional  reconnaissance  to  be  made  by  outgoing 
and  incoming  submarines. 

Corresponding  instructions  have  been  issued  to  Group  North  Fleet 
and  Naval  Staff,  Submarine  Division. 

II0  On  16  Jul.,  Admiral  Riccardi  forwarded  a  detailed  reply 
via  Admiral  Bertoldi  to  the  letter  of  Commander  -  in  Chief  Navy 
of  12  Jul.  He  stood  by  the  decision  to  use  the  fleet  as  soon 
as  even  the.  slightest  chance  of  success  should  offer.  At  the 
moment,  however,  he  did  not  consider  that  such  a  possibility 
existed  either  for  the  battleship  fleet  or  for  the  light  forces., 

In  regard  to  Chief,  Naval  Staff's  reply  to  this  letter,  the 
German  Naval  Liaison  Officer  attached  to  Italian  Commander,  . 
Submarines  Bordeaux  has  forwarded  a  request  from  the  Italian 
Commanding  Admiral  Submarines,  Admiral  Legnani,  that  the  fol- 
lowing items  should  also  be  dealt  with  if  possible. 


-261-  CONFIDENTIAL 


::.zz:z:~zz.,i 
2C  Jul.  1943 

~,  Construction  of  small   submarines  for  the  Medi- 

... 

b.  Ire  parbicipaticn  of  German  experts  in  the  tests 
of  these   snail  submarines. 

c,  German  help  in  supply!  Lnes. 

In  :-gr:ement  with  Adiairal  Legnani,    the   Zerman  Raval  Liai- 
son  Officer  suggested  that  the  letter  be  deli.: red  person- 
ally by  Captain  Z- res  si  in  Rome. 

7.e  Naval  Liaison  Officer  attached  to  the  Italian  Commander 
Submarines,    3ordeaux  also  reported  t  tdmirai  Legre.ni   is 

entirely  persuaded  of  the  importance  of  our  request  for  Zemolo 
and  Remo  and  has  fully  1  lad  -   ed  that  responsibility  for  the 
solution  of  the   rubber  transport  problem  lies  at  present  largely 
■with  the  Italian  Navy.     Legnani  is  also  prepared  to  demand 
immediate  construction  of  two  transport  submarines  for  Germany 
at  the  Monf   1  :    ne  ship-yards  for  which  Germany  would  have  to 
e  u     ly  only  the  cc  n  5 1  ructional   sfce  el.     Furth  ermore,   Admiral 

-    vni   iree.ris   e:    gee    :':>:    :~:\v  :-rsi  :r.   :;    ele   1-ericl::    era   Zrir 
started  as  soon  as  he  returns  to  Rome. 

let  ::  ::  reply,  Wiich  is  to  be  delivered  by  Captain 
Grossi  as  suggested  comprises  an  »r  clear  statement  of 
the  views  of  Commander   ir.  Chief,    fevy  in  rd  to  the  use 

of  the  Italian  Fleet  and  also  deals  with  the  questions  sug- 
gested by  Admiral  Legnani. 

The  texts  of  the  two  letters  and  of  the  reports  from  Navel 
Li:.  Officer  attached  to  Italian  Comnnnder   Submarines, 

Bordeaux  are  attached  to  >lar  Diary,   Part  C,  Vol.  XIV  with 
Order  of  Naval  Staff,   Operations  Division  I  B  2059/43  Gkdos, 
ache. 

ir  lee.us: 

I.         Vice  Admiral  Abe  forwarded  the  following   answer  from 
the  Haval  ,    Tokyo  16  Jul.,   in  regard  to  the  use 

of  Japanese  trens    :rt  submarines. 

"The   Imperial  Japanese  iiavy    A:      re  cog  necessity  of 

using  transport  submarines  for  the  vital   :      _ : ic  between  Europe 
an  isia.     For  so:::    ;i:ne  it  has  been  inves"  ing  the 

lity  of  Japan  also  employing       r  submarines  for  this 
-pose  but  regrets  that,   owing  to  the  pr    :     ~   war  situation 


-      2-  F i:  Z'-.-.L 


CONFIDENTIAL 
20  Jul,  1943 

and  due  to  the  lack  of  first-line  submarines  it  is  still  not 
in  a  position  to  undertake  the  conversion  or  construction  of 
submarines  for  this  purpose. 

However,  as  soon  as  the  war  situation  permits,  it  is  planned 
to  put  this  idea  into  practice  and  it  would  be  appreciated  if 
the  German  Navy  would  furnish  the  essential  experience  reports 
and  other  information  in  connection  with  transport  submarines. 

Group  South  submitted  a  memorandum  from  the  Italian  Navy  con- 
cerning the  conference  between  Admiral,  Patras  and  Naval  Group 
South,  on  15  May  1943  together  with  a  statement  of  the  Group's 
own  opinion.  For  letters  as  per  l/Skl  2046/43  Gkdos,  Chefs, 
see  files  of  Naval  Staff,  Operations  Division,  Situation  Maps 
and  Files  Section,, 

Naval  Staff  fully  concurs  with  the  statement  of  Commanding 
Admiral,  Naval  Group  South.  Of  particular  importance  is  Group 
South' s  warning  that  any  alteration  in  the  disposition  of  the 
Italian  naval  forces,  which  are  almost  entirely  located  in  the 
Tyrrhenian  Sea  and  the  western  areas  of  Italy,  will  become 
practically  impossible,  if,  by  advancing  in  Sicily ^  the  enemy 
is  able  to  render  the  Straits  of  Messina  impassable,,  In  this 
case,  while  the  enemy  threat  to  the  Adriatic  -  Aegean  traffic 
will  be  greatly  increased  from  this  position,  it  will  no  longer 
be  possible  to  assign  additional  naval  forces  to  strengthen  the 
traffic's  defense. 

III.  Naval  Staff,  Naval  Intelligence  Division  has  analyzed 
new  information  on  British  landing  craft.  In  addition  to  the 
types  already  known,  there  is  also  an  auxiliary  landing  boat 
(LCS)  of  a  new  design  and  an  artillery  landing  boat  (LCH). 
For  copy  of  the  report  as  per  l/Skl  21617/43  geh,  see  War  Diary 
Part  D:  "Evaluation  of  Information  Foreign  Navies «" 

Situation  on  20  Jul.  1943: 

I.    Warfare  in  Foreign  Waters: 

1»    Enemy  Situation: 

'  Intelligence  reports  state  that  a  convoy  of  al- 
legedly 30,000  men  and  war  material  is  to  leave  Freetown  be- 
tween 18  .and  20  Jul.   It  was  reported  from  British  India,  via 
Ostrow,  as  of  29  Jun.  that  the  motor  ship  ICUilMBLA,  which  ar- 
rived in  Bombay  on  25  Jun.,  is  the  first  troop  transport  to 
transit  the  Mediterranean. 


-263-  CONFIDENTIAL 


CONFIDENTIAL 
20  Jul.  1943 

Naval  Staff,  Naval  Intelligence  Division  has  made  a  detailed 
report  on  the  enemy  position  in  the  Gulf  of  Mexico  and  in  the 
Caribbean  Sea.   For  copy  of  the  report  as  per  l/Skl  19807/43 
Gkdos.  sec  War  Diary,  Part  C.,  Vol0  I« 

2.    Own  Situation: 

Naval  Staff  has  informed  Ship  28,  by  radiogram 
0031  on  the  arrival  at  Penang  of  the  MARCO  POLO  on  16  Jul,  and 
of  this  submarine's  successful  action' in  LY  on  9  Jule  Naval  ■ 
Staff  has  also  inferred  Naval  Attach!,  Tokyo  by  teletype  0107, 
that  between  1  Jan  and  18  Jul,  our  submarines  in  the  Indian 
Ocean  have  sank  40  ships  for  221,000  BRT  of  which  12  ships  for 
56,000  BRT  were  sunk  between  1  and  18  Jul. 

Naval  Staff  has  forwarded  details  of  the  submarine  successes 
in  the  Indian  Ocean  from  2-17  Jul.  to  all  ships  in  foreign 
waters.   For  copy  see  radiogram  1321*  All  ships  in  foreign 
waters  have  also  been  informed,  by  radiogram  1005,  on  the 
warning  to  Allied  merchantmen  issued  by  Anapolis  on  3  Jul, 
concerning  the  approach  of  Allied  planes  in  the  area  1200 
miles  around  Balboa c 

Naval  Attache,  Tokyo  reports  that  the  AQUILA  3  went  into  dock 
on  16  Jul.,  that  the  repairs  will  take  longer  than  the.  time  re- 
quired for  loading  and  that  her  date  of  readiness  for  sailing 
is  provisionally  estimated  as  mid-August.  Throughout  the  boat's 
voyage  the  weather  was  very  bad  and  the  Italians  have  therefore 
suggested  that  refuelling  should  not  be  done  in  the  Indian  Ocean 
as  the  boats  are  too  heavily  loaded  for  rounding  the  Cape  in  a 
heavy  sea,  but  that  instead  the  ballast  tanks  which  take  40 
tons  of  rubber  be  filled  with  oil  and  refuelling  done  in  the 
South  Atlantic.  Etappe,  Tokyo  will  try  to  load  rubber  on  the 
superstructure  deck  if  diving  trial  prove  successful.  Naval 
Attache,  Tokyo  comments  that  it  is  not  possible  to  supply  the 
submarines  in  the  South  Atlantic  by  the  BOGOTA  and  requests  a 
decision  in  regard  to  the  Italian  suggestion.  For  copy  of  the " 
teletype  from  Tokyo  2060/43  Gkdos.  Chefs.  Jul.  see  War  Diary 
Part  C,  Vol.  IX. 

Naval  Attache,  Tokyo  has  been  informed  by  Naval  Staff's  tele- 
type OO25  as  to  the  points  of  reference  for  the  voyage  of  the 
ALSTERUFER,  the  030RN0  and  the  HAVELLAIJD. 

II.   Situ  .tion  in  the  West  Area: 

1.    Enemy  Situation: 


_264-  CONFIDENTIAL 


CONFIDENTIAL 
20  Jul.  1943 

Todays  29  planes  were  detected  in  the  Bay  of  Bis- 
cay mainly  in  the  area  between  45°  and  47°  N  and  07°  and  12° 
W. 

One  British  unit  was  located  at  1055  in  AM  4&10  and  one  at 
1740  in  AM  7120. 

One  of  our' planes  sighted  a  diving  submarine,  probably  an 
enemy  boat,  at  1614  on  19  Jul.  in  BF  9533  (off  the  Gironde)„ 

According  to  an  intelligence  report  from  a  reliable  source  in 
Paris,  a  British  Intelligence  Service  agent  who  was  landed  in 
the  Nantes  area  in  the  week  11-17  Jul,  is  said  to  have  stated 
that  a  landing  will  be  made  near  Dunkirk  on  23  Jul.  The  In- 
telligence Division  has  received  several  reports  from  other 
sources'  of:  imminent  landings  near  Dunkirk  on  dates  given  as 
20  or  23-  Jul.  Or  other;  dates  up  to  the  end  of  Jul„  An  intel- 
ligence report  of  8  Jul.  -received  via  Ostrow,  states  that  there 
were  at  least  11  destroyers  and  several  other  small  vessels  in 
Falmouth  on  6  Jul.  The  number  of  invasion  vessels  on  the  South 
Coast  has  certainly  been  increased,  apparently  by  reinforce- 
ments from  America.   Otherwise,  there  are  no  special  indica- 
tions of  an  imminent  major  operation  from  the  southwestern 
area  of  England, 

2,    Own  Situation: 

Atlantic  Coast:     

Two  ELM/ J  mines  were  swept  off  Lorient.   5th  Tor- 
pedo boat  Flotilla  left  Bayonne  with  the  MOEVE  and  torpedo 
boat  "19"  in  order  to  bring  in  submarine  U  558  which  is  re- 
ported to  be  completely  unable  to  submerge.   The  flotilla  has 
orders  to  be  in  BF  5725  at  0600  on  21  Jul. 

Naval  Group  West  has  submitted,  for  information,  the  opera- 
tional order  to  8th  Destroyer  Flotilla  for  the  escort  of  three 
submarines  from  Royan  to  11°  West.  For-  copy  as  per  l/3kl  2050/ 
43  Gkdos.,  Chefs.,  see  War  Diary  Part  C,  Vol.  II  b.   In  spite 
of  the  doubts  in  Chief,  Naval  Staff,  Submarine  Division,  as  to 
the  adequacy  of  the  escort  up  to  11°  West  as  planned,  and  of 
the  request  that  it  be  extended  as  far  as  16°  West,  Chief,  Naval 
Staff  decided  that  no  further  extension  boyoxyi   .11°  West  could 
be  considered. 

In  view  of  the  date  r-  wnich  destroyer  Z  "32"  will  leave  dock 


-265-  COIIFIDENTIAL 


COMF1  DENTLvL 
20  Jul.  1943 

Group  West  has  postponed  the  start  of  the  operation  to  1200 
on  22  Jul.  so  as  to  be  able  to  dispatch  three  destroyers  if 
possible. 

Channel  Coast: 


Nothing  to  report „ 

III.  North  Sea,  Norvra:^,  Northern  Waters: 

North  Sea: 

While  acting  as  anti-aircraft  protection  for  the  Swedish 
steamer  VTDAR  which  was  beached  near  Tcrschelling,  our  patrol 
boat  VP  "805"  struck  a  mine  and  sank  at  1528  with  heavy  casu- 
alties among  the  crew.  Salvage  of  the  VID^R  has  been  abandoned 
because  of  the  mine  danger  and  since  the  results  were  in  any 
case  dubious.  Nine  ELM/J  mines  were  cleared  in  the  Terschelling 
area  and  one  near . Schiermonikoog. 

Minesweeping  and  patrol  service  were  hindered  oy  the  weather. 
No  other  important  events  have  been  reported. 

Norway,  Northern  Waters: 

1,  Enemy  Situation: 

Sixteen  planes  were  detected  over  the  North  Sea 
by  Radio  Intelligence  but  no  activity  was  noticed  in  the  area 
of  Iceland  squadrons. 

Group  North,  Fleet  sees  no  special  significance  in  the  sighting 
of  a  light 'cruiser  in  the  afternoon  of  19  Jul.  on  course  10° 
in  AE  2727. 

2.  Own  Situation: 

At  0153.,  radar  sets  located  for  the  first  time  a 
number  of  a  light  and  several  bigger  naval  targets  east  of 
Kiberg  and  scuth  of  Vardoe.  The  locations  continued  up  to 
0830.   Owing  to  misty  weather,  the  targets  were  not  sighted 
either  from  land  or  by  our  air  reconnaissance.  The  Defensive 
fire  by  our  batteries  was  based  exclusively  on  the  radar  lo- 
cations.  The  enemy  did  not  return  fire.   Naval  Command,  Nor- 
way believes  it  to  have  been  an  enemy  mining  operation  or  a 
raid  on  our  coastal  battery  positions.  The  area  has  been 
closed  due  to  suspected  mines.  For  the  battle  report  of  3rd 


-266-  COMF1 DENTIAL 


CONFIDENTIAL 
20  Jul.  1943 

Naval  Artillery  Battalion  513,  see  teletype  1425. 

The  raid  in  the  Kongsf jord  revealed  that  the  dismantled  radio 
station  discovered  at  the  north  western  exit  was  probably 
moved  further  inland.   The  material  found  indicate  the  ex- 
istence of  an  extensive  espionage  organization. 

The  LODY  left  TRONDHEIM  for  Alt  a  on  19  Jul.  and  destroyer  Z 
"28"  left  Alt a  for  Trondheim  on  20  Jul. 

Thirty-nine  ships  were  escorted  to  the  north  and  23  to  the 
south.  Seven  ships  were  held  up  by  lack  of  escort. 

In  the  forenoon  of  19  Jul.,  patrol  boat  NKJ  09  was  sunk  near 
Nordkyn  by  a  torpedo  from  an  enemy  submarine.  Twenty-one  men 
are  missing. 

Naval  Command,  Norway  has  asked  that  the  request  of  Group  North 
Fleet  for  destroyer  Z  "28"  to  be  repaired  at  Trondheim  be  dis- 
approved as  it  would  delay  the  repair  of  coastal  vessels. 
Naval  Command  Norway  announced  that  it  was  contemplating  making 
a  request  for  expansion  and  increase  of  personnel  at  Trondheim 
in  case  it  were  planned  to  keep  the  dockyards  continually  oc- 
cupied with  destroyer  repairs.   (See  teletype  1850). 

As,  after  consultation  with  High  Command,  Navy,  Bureau 
of  Naval  Armament,  Naval  Construction  Division,  it  is 
planned  to  ignore  this  somewhat  surprising  objection  on 
the  part  of  Naval  Command  Norway,  there  is  no  need  for 
Naval  Staff  to  intervene. 

IV.   Skagcrrak,  Baltic  Sea  Entrances.  Baltic  Sea: 

1.    Enemy  Situation: 

Lively  shipping  traffic  was  observed  in  the 
Kronstadt  Boy.  There  was  intense  air  activity  in  the  area  of 
the  islands. 

"  2.    Own  Situation: 

Motor  minesweeper  MR  "11"  has  completed  mine- 
sweeping  on  the  eastern  flank  of  the  Skagerrak  barrage.  A 
Danish  boat  cleared  a  mine  in  the  Samsoe  belt.  Patrol  boat 
VP  "1014"  struck  a  mine  north  of  Laaland  and  sank,  with  a 
loss  of  seven  men.-  One  submarine,  3  troop  transports,  1 
tanker,  2  steamers,  mine  transport  ship  "Otter"  and  the  motor 
ships . BRUMM2R  and  SKAGERRAK  were  escorted  in  the  area  of 
Commanding  AAniral,  Defenses  East.  Destroyers  Z  "29"  and  "33" 
put  out  from  the  Baltic  for  the  northern  arca0 

-267-  CONFIDENTIAL 


CONFIDENTIAL 
20  Jul.  1943 

One  ELM/ J  mine  was  cleared  east  of  Fehmarn  and  two  near 
Darsser  Ort.  One  Polish  MO  8  nine  was  recovered  near  Ox- 
hoeft. 

Two  tankers  and  4  steamers  were  escorted  in  the  Baltic  Sea 
and  3  troop  transports  and  3  leave  transport  operations  were 
carried  out. 

Mineswceping  in  the  Irbcn  Street  was  continued.  Enemy  planes 
unsuccessfully  attacked  our  formations  west  of  Hochland.  An 
incussion  by  twenty  enemy  planes  was  reported  at  Hungerburg 
but  no  attack  was  made.  Minor  damage  was  caused  by  bomb  frag- 
ments during  an  attack  on  the  Heavy  Gun  Carrier-West,  Several 
bombs  fell  on  Tuctters.  North  of  Kronstadt,  Naval  artillery 
Battalion  530  shelled  a  tug  with  a  barge.   Oho  hit  was  ob- 
served and  the  vessel  burned  for  a  long  time* 

V.    Submarine  Warfare: 

1.  Enemy  Situation: 

According  to  sighting  reports  from  our  submarines, 
there  was  a  big  two-funnelled  steamer  with  a  destroyer  on  course 
40  in  DU  4387,  -nd  a  group  of  several  steamers  in  ED  8559  on 
a  presumably  southerly  course, 

2.  Own  Situations  .'-'■' 

In  the  Bay  of  Biscay,  our  submarines  U  "193"  and 
"195"  arc  presumed  lost,  following  repeated  enemy  air  attacks* 
At  noon,  U  "558"  reported  that  she 'was  unable  to  submerge  fol- 
lowing an  air  attack.  The  boat  has  made  no  further  signals,, 
U  "415"  drove  off  an  air  attack. in -EE  84  and  85,  and  U  "662" 
had  an  engagement  with  a  -Catalina  lasting  one  hour, 

U  "532"  and  "533"  waited  in  vain  for  36  hours  at  the  rendezvous 
point  to  get  supplies  from  U  "160".  As  this  unit,  which  was 
to  supply  the  Monsoon-boats,  is  also  lost,  one  of  the  Monsoon- 
boats  themselves  -  U  "516"  -  will  have  to  take  its  place. 

A  report  from  a  Spanish  steamer,  received  via  Tcneriffe,  to 
the  effect  that  a  big  aircraft  carrier  was. sighted  on  11  Jul. 
in  DG  99,  presumably  on  anti-submarine  duty,  may  help  to  ex- 
plain the  recent  submarine  losses  in  that  area. 

*  - 

A  convoy  of  seven  ships  leaving  Lisbon  at  2200  was  attacked 
by  submarine  U  "445"  with  five  torpedoes  in  CG  5832  shortly 
after  midnight.   Two  explosions  were  heard.   No  other  results 
were  observed. 

-268-  CONFIDENTIAL 


CONFIDENTIAL 
20  Jul.  1943 

VI.  Aerial  Warfare: 

British  Isles  and  Vicinity: 

No  reports  of  interest  have  been  received. 

Mediterranean: 

Close  interpretation  of  the  photographic  reconnaissance 
of  the  afternoon  of  19  Jul.  had  revealed  2  battleships  each 
at  La  Valetta  and  Marsa  Shirocco' as  well  as  2  aircraft  carriers, 
6  cruisers  (one  of  them  in  dock),  12  destroyers,  3  big  tankers, 
14  freighters,  1  big  transport,  11  LST  and  many  landing  boats 
at  La  Valetta.  In  the  night  of  19  Jul.,  56  bombers  were  sent 
out  against  these  targets.  Besides  impacts  and  fires  in  the 
harbor,  our  planes  heavily  damaged  2  steamers  (18,000  BRT)  and  . 
slightly  damaged  2  other  steamers  (15,00  BRT). 

The  Italian  Air  Force  reports  the  following  preliminary  total 
results  from  10  to  17  Jul.: 

Sunk:  8  units  for  55,000  BRT  and  1  destroyer;  Probably  sunk: 
8  vessels  for  51,000  BRT  and  one  cruiser.  Damages:  24  vessels 
for  145,000  BRT, '1  battleship,  10  cruisers,  5  destroyers  and 
3  other  warships „ 

Of  the  81?  Italian  planes  participating  in  the  operations,  30 
were  lost. 

During  the  night  of  19  Jul,  the  enemy  attacked  the  airfield 
at  Aquino;  21  of  our  planes  were  destroyed,  33  heavily  damaged 
and  3  slightly  damaged 0 

During  the  day,  the  airfields  at  Monte  Corvino  (near  Salerno) 
and  Vibo'Valentia- and  two  airfields  in  southern  Sardinia  were 
attacked.  So  far,  the  loss  of  four  more  of  our  planes  has  been 
reported.  Another  attack  was  directed  against  our  small  shipping 
traffic  in  the  Straits  of  Messina  during  which  2  ferries  car- 
rying ammunition  north  of  Catania  were  destroyed.  In  the  night 
of  20  Jul.,  Naples  was  attacked  by  small  forces „ 

Eastern  Front: 

Fifty-eight  enemy  planes  were  shot  down  on  the  Army 
front  on  19  Jul* 

VII,  Warfare  in  the  Mediterranean  and  Black  Sea: 


-269-  CONFIDENTIAL 


CONFIDENTIAL  . 
20  Jul.  1943 

1.    Encny  Situation: 

Situation  on  Land: 

Due  to  threatened  encirclement  of  the  right  flank, 
15th  Motorized  Division  was  withdrawn  during  the  night  of  19 
Jul.  The  enemy  followed  up  only  with  small  forces.  During 
the  forenoon,  all  attacks  against  the  "Hermann  Goering"  Divi- 
sion were  repulsed.  A  new  defensive  battle  was  still  underway 
in  the  evening.  The  enemy  has  not  yet  launched  the  decisive 
attack  on  Catania.  .. 

Situation  at  Sea: 

Photographs  of  Marsa  Shirocco  on  the  evening  of  * 
19  Jul,  revealed  7  light  cruisers  (some  probably  destroyers), 

1  1ST,  2  LCT,  1  small  tanker,  and  1  steamer  in  addition  to  the 

2  battleships  already  mentioned,  .it  1839,  1  battleship  was 
sailing  on  a  southerly  course,  12  miles  north  of  Augusta.  In 
addition, "heavy  shipping  traffic  was  reported  on  the  east  coast 
of  Sicily, 

The  Commanding  Admiral,  Defenses  Messina  Straits,  with  four 
motor  minesweepers  had  a  brief  engagement  i/ith  four  MGBs  at 
0J.07  in  the  southeastern  exit  of  the  Strait. 

Commander  PT  Boat  Force,  who  left  Salerno  with  six  boats  at 
1320  on  19  Jul.,  advanced  as  far  as  Syracuse,  after  passing 
Messina  at  2100  and  making  a  wide  detour  to  the  east.  From 
0032  -  0140  he  attacked  in  broad  formation  a  convoy  of  3 
steamers  and  2  LST  with  3.  destroyers  and  1  corvette  coming 
from  the  south  and  making  for  Syracuse.  Two  destroyers  and 
1  steamer  of  3000  BRT  were  sunk  and  1  steamer  (8,000  BRT)  was 
hit  by  a  torpedo,  PT  boat  S  "61"  was  hit  several  times.  One 
man  was  killed.  The  formation  turned  back  to  Crotone  at  0140 
as  all  ammunition  was  exhausted.  From  03 00  -  0451  an  enemy 
contact " plane  shadowed  the  formation  which  put  in  to  Crotone 
at  0845.  For  brief  report,  see  teletype  2330. 

This  highly  satisfactory  first  success  by  the  newly  established 
1st  PT  Boat  Force  was  apparently  the  reason  for  a  heavy  enemy 
offensive  against  the  new  base  at  Crotone  which  had  been  detec- 
ted by  air  reconnaissance.  At  2230,  an  enemy  formation  of 
several  vessels  was  located  12  miles  north  of  Punta  Stilo,  on 
a  northerly  course  which,  at  0150  on  21  Jul.  bombarded  Crotone, 
harbor*  1st  PT  Boat  Force  was  warned  shortly  after  the  first 
sighting  report  and  left  port  before  the bombardment. 

On  the  afternoon  of  20  Jul.,  our  air  reconnaissance  reported 

-27O-  CONFIDENTIAL 


•  •  CONFIDENTIAL 

20  Jul,  1943 

I  anti-aircraft  cruiser,  9  destroyers,  IS  large  boats  and  9 
merchantmen  as  well  as  other  small  vessels  off  the  coast  north 
of  Avola.  At  1700,  3  vessels  shelled  the  coast  near  Catania. 
According  to  photographs,  1  cruiser,  1  monitor,  16  freighters 
(125,000  BRT)  ,  2  destroyers, 'and  25  landing  boats  were  at 
Augusta  and  12  freighters  (20,000  BRT),  1  tanker,  12  LST  and 
44  landing  boats  were  at  Syracuse,  At  1925  (apparently)  war- 
ships were  sailing  south  east  of  Augusta  and,  at  1935,  12 
freighters  and  1  cruiser  were  apparently  lying  stopped  5  miles 
east  of  Avola.  At  the  same  time,  6  freighters  (12,000  BRT), 

5  LCT  and  17  small  landing  boats  were  reported  at  Empedocle 
as  well  as  1  big  freighter  (14,000  BRT)  and  other  small  ves- 
"  sels  were  reported  off  Empedocle . 

Naval  Staff,  Naval  Intelligence  Division  has  made  a  summary 
of  the  preliminary  information  gained  on  enemy  methods  during 
the  landing  operations  in  Sicily,  partly  based  on  material 
from  Army  General  Staff,  Foreign  Armies  West,  and  has  for- 
warded the  report  to  the  Groups,  Naval  Commands  North  and 
East,  as-  well  as  to  German  Naval  Command  Italy  and  to  Command- 
*-•  ing  General,  Armed  Forces  Soutn.  Operations  Staff  I  a  Navy, 
For  covy   as  per  .V/SYJ.   20440/43  Gkdos  see  War  Diary  Part  C  Vol. 
XIV..  This  information  on  enemy  methods  merits  careful  attention 
in  every  respect. 

•-;.    2„    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

A  convoy  of  7  freighters  entered  Gibraltar  from 
the  Atlantic,  The  big  convoy  of  94  freighters  which  passed 
Tres  Forcas  at  1900  on  18  Jul,  sailing  east,  has  not  been 
detected  again.  It  is  assumed  that  it  put  in  to  Oran  or 
Algiers o 

According  to  the  calculations  of  Naval  S^aff,  Naval  Intell- 
igence Division,  the  distribution  of  shipping  throughout  the 
Mediterranean  is  as  follows: 

At  Gibraltar:  60  ships  for  357; 000' BRT.  Other  parts  of  the 
Mediterranean:  584  ships  for  3,423,000  BRT.  Total:  644  ships 
for  3,780,000  BRTV  From  these  figures  the  following  can  be 
subtracted  for  the  period  1-18  Jul,: 

Losses:  47  ships' for  250,000  BRT,  Withdrawan  via  the  Red  Sea: 

II  ships  with  65,000  BRT,  Presently  in  the  Mediterranean: 
586  ships  for  3,465,000  BRT* 


-27I-  CONFIDENTIAL 


CONFIDENTIAL • 
20  Jul.  1943 

Of  these,  55  are  transports  for  756,000  BRT, ■ 488  are  freight- 
ers for  2,360,000  BRT  and  54  tankers  for  349,000  BRT. 

According  to  Radio  Intelligence,  enemy  air  reconnaissance 
covered  the  area  from  Tunisia  to  the  Gulf  of  Genoa,  most  re- 
ports en  our  convoys  and  single  ships  coming  from  the  area 
around  Elba, 

No  sighting  reports  have  been  received  from  the  Eastern  Med- 
iterranean, 

According  to  an  intelligence  report  based  on  information  dated 
14  Jul.,  from,  a.;-  agent,  in  England,  a  special  ilediterranean 
squadron  has  been  established  with  central  command  at  Gibral- 
tar and  operational,  area  Gibraltar  and  Malta,   The  squadron's 
mission  is  convoy  protection.   Composition:  1  battleship,  2 
cruisers,  2  destroyer  flotillas,  1  submarine  flotilla.  The 
latter  includes  6  Dutch  submarines.  The  squadron  is  reported 
to  be  in  action  in  the  Mediterranean  at  the  moment, 

3o    Qwri  _Sit nation  in  Other  Parts  of  the  Mediterranean 
Sea  Transport  Situation:  .     . 

No  reports  have  yet  been  received  on  the  execu- 
tion of  the  mine  laving  task  of  the  DOMMERi:  and'  BRATDEL 'BURG 
near  Sardinia  0  The  fJiips  are  -on  their  way  back  from  Madda- 
lena  to  Toulona  '■-'■■••    ... 

Torpedo  boat  TA  !T0" , : which- transferred  from  Taranto  to 
Bari  after  having  been  replaced1 in  operational  status,  2 
submarine  chasers,  '■!-' Italian  destroyer,  2  torpedo  boats  and 
1  Italian  torpedo  boat  were  on  duty  in  the  escort  service. 
Five  steamers  were  escorted  in  the  island  traffic „  Torpedo 
boat  TA  "10"  escorted  1  steamer  from  Bari  to  Piraeus, 

Mine  operation  H  6  a  was  temporarily  postponed  because  of 
bad  weather.  •,  , 

4-.     kyr--A.   Naval  Group  South: 

Aegean:       •    •         r   ,• 
Enemy  Situation:, 

Armed  Forces  High  Command,  Operations  Staff  has 
forwarded  to  Commanding  General  Armed  Forces  Southeast  the 
intelligence  report  on  an  immediately  imminent  enemy  operation 
against  the  Dodecanese  or  Crete  or  both  (see  War  Diary  19  Jul,) 


-272-  CONFIDENTIAL 


CONFIDENTIAL 
20  Jul.  1943 

adding  that  Crete  and  the  High  Command  must  be  warned  and 
inquiring  "What  does  German/Italian  air  reconnaissance 
towards  Cyprus  and  Syria  indicate?"  Naval  Staff  has  in- 
formed Naval  Group  South,  Admiral  Aegean  and  German  Naval 
Command,  Italy.   For  Order  l/Skl  20417/43  Gkdos.  see  War 
Diary  Part  C  Vol.  XIV  e 

According  to  another  Intelligence  Report  of  20  Jul.,  received 
via  Naval  Information  Station,  Istanbul,  the  departure  for 
Cyprus  of  further  troop  and  tank  reinforcements  at  the  begin- 
ning of  Jul.  has  also  been  reported  from'  other  sources 0  An 
Intelligence  report  from  Lyon  of  16  Jul0,  quotes  a  Spanish 
officer  as  stating  on  15  Jul.  that  an  Anglo-American  attack 
on  Creta  is  to  be  expected  on  25  Jul.  or  by  the  end  of  Jul0 
at  the  latest.  The  report  is  based  on  a  photostatic  copy  of 
the  operational  order  signed  by  Lord  Hountbatten., 

At  1620  on  19  Jul.,  a  submerged  submarine  was  sighted  by 
planes  20  miles  east  of  Carigo. 

Own  Situation: 

At  1300  on  19  Jul.,  enemy  air  forces  attacked  the  sea- 
plane base  at  Prevesa  with  bombs  and  gunfire.  Three  Italian 
planes  were  damaged.   The  Q-ship  GA  "42"  put  in  to  Piraeus 
with  engine  trouble.  Air  Force  Command  Southeast  reports 
that  9  enemy  planes  flew  into  the  northwestern  Peloponnese 
during  the  night  of  18  Jul.  for  the  purpose  of  supplying  the 
insurgents. 

Convoy  traffic  in  the  Aegean  was  carried  out  as  scheduled 
and  without  incident. 

Special  Items: 

Naval  Group  South  has  submitted  a  well  substantiated  request 

for  reinforcement  of  the  naval  forces  in  the  Aegean.  For 

copy  as  per  l/Skl  20436/43  Gkdos.  see  T..ar  Diary  Part  C,  Vol„ 
XIV. 

The  request  is  fully  justified.  Unfortunately,  how- 
ever, it  can  be  fulfilled  to  only  a  very  small  extent. 
The  matter  will  be  followed  up  by  Naval  Staff,  Quarter- 
master Division. 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report* 

-273-  CONFIDENTIAL 


c?:tidemtial 

20  Jul.  1943 

Own  Situation: 

On  19  Jul.  motor  minesweeper  R  "33"  was  lost  by  a  di- 
rect bomb  hit  during  an  enemy  air  attack  on  Yalta.  Group 
South  has  urgently  requested  its  speedy  replacement  by  a 
vessel  from  Germany,  At  2306  on  18  Jul.^  two  enemy  vessels 
were  sighted  five  miles  off  Anapa.  No  engagement  took  placee 
At  2230  on  19  Jul.,  2  enemy  planes  were  observed  to  lay  4 
mines  in  the  Danube  estuary  near  mile  indicator  34. 

1st  PT  Boat  Flotilla  laid  a  weather  duos'-  iuring  the  night  of 
19  Jul,  as  planned.  1st  and  11th  PT  Boat  Flotilla. s  made  no 
contact  with  the  enemy  during  operations  last  night 6  It  is 
planned  to  send  out  1st  PT  Boat  Flotilla  in  two  groups  of  three 
boats  each  on  the  night  of  20  Jule  off  the  Caucasus  coast. 

Submarine  U  "23"  has  put  in  to  Constant zac 

Submarine  U  "18"  is  en  route  from  Theodosia  to  Constantzae 

Supply  and  convoy  traffic  off  the  Crimean  coast  was  carried 
out  according  to  plan. 

In  order  to  relieve  the  Army  front  it  has  been  planned  to 
carry  out  suprise  bombardments  at  2300  on  20  Jul.  as  follows: 
On  the  llius-front,  east  of  Varenovka  by  Naval  artillery  lighter 

"1"  and  "2"  and  motor  minesweeper  RA  "56";  at  Yeisk  by 
naval  artillery  lighter  MAL  "3"  and  motor  minesweeper  RA  "51"; 
at  Primorsko  Akhtarski  by  naval  artillery  lighter  MAL  "8"  and 
"9"  and  motor  mi:  Jsweeper  R  "36"  and  at  Archuyer  by  naval  ar- 
tillery lighters  MAX  "9"  2-nd  "10"  with  motor  minesweeper  R 
"30".  Action  reports  have  not  yet  been  received. 

VIII.  Situation, East  Asia: 

Japanese  Headquarters  announces  that  several  islands  in  the 
Solomons  ar  1        lied  by  Japanese  fleet  units  and  that 
58  enemy  planes  were  shot  down  during  an  enemy  air  attack  on 
Buin.   It  is  also  announced  that  an  enemy  torpedo  boat  flo- 
tilla was  dispersed  during  an  attempted  landing  on  New  Georgia. 

The  Allied  communique  reports  that.  1  Japanese  destroyer  was 
probably  sunt;  and  3  others  were  damaged  during  engagements 
on  the  west  coast  of  Cclombangra  Island.  It  is  also  stated 
that  1  Japanese  merchantman  was  sunk  and  2  destroyers  and  1 
merchantman  damaged  in  the  Bruin  area  and  33  Japanese  fight- 
ers shot  down  with  a  loss  of  4  Allied  planes.  The  attack 
against  the  airfield  at  Munda  is  said  to  have  advanced  to  the 
defense  positions  of  the  airfield  itself. 


-274-  .:z:;tLaL 


CONFIDENTIAL 
21  Jul.  1943 

Items  of  Political  Importance: 

The  English  press  comments  on  the  fact  that  so  far  no  men- 
tion has  been  made  in  the  Russian  press  concerning  the  land- 
ing in  Sicily  and  only  a  little  official  information  has  been 
published. 


According  to  Reuter,  Knox  has  issued  a  warning  against  pre- 
mature v public  optimism  which  would  only  result  in  slowing 
down  war  production.,  The  attack  on  the  European  fortress 
had  not  yet  begun,,  Only  a  few  preliminary  military  suc- 
cesses had  so  far  been  gained.   It  was  nonsense  to  talk  a- 
bout  winning  the  war  so  long  as  Hitler  still  ruled  over  the 
people  and  natural  resources  of  the  whole  of  Europe. 

The  foreign  press  comments  on  the  meeting  between  the  Fuehrer 
and  the  Duce  with  the  usual  speculations,  and  stresses  the 
unusual  form  of  the  official  communique  which  reveals  little 
satisfaction  on  either  side. 

Conference  with  Chief,  Naval  Staff:  • 

A,    Report  of  Chief  j_ Bureau  of  Naval  Administration;  Naval 
5rdr«ance  Division,  "Torpedo  Branch:  ". 

ac  The  question  of  torpedo  tubes  for  the  1/alther  sub- 
marines must  be  settled.  The  newly  established  dates  of  read- 
iness, are  no  longer  dependent  on  torpedo  tube  production,, 

After  considering  all  advantages  and  disadvantages,  Torpedo 
Branch  suggested  that  the  Walt her  boats  be  equipped  with  non- 
piston  firing  tubes  even  if  splash  has  not  yet  been  entirely 
elijninated  and  the  tubes  cannot  be  used  for  mine  laying.  For 
the  VII  C-boats,  however,  non-piston  firing  cannot  be  recom- 
mended until  splash  is  completely  eliminated. 

Chief  of  Bureau  of  Naval  Administration,  Naval  Ordnance  Di- 
vision will  go-  into  the  matter  of  whether  it  is  quite  impos- 
sible to  launch  mines  with  the  new  tubes  or  whether  it  is  only 
impossible,  to  do  so  without  causing  splash.  The  decision  of 
Commander  in  Chief,  Navy  will  be  postponed  until  completion 
of  this  investifation. 

b.    The  question  of  torpedoes  for  the  Walther  sub- 
marines must  also  be  settled.   Torpedo  Branch  suggested  that 
2,500.5-meter  Ingolin  torpedoes  be  provided  for  type  XXII  and 
the  production  of  the  7-meter  Ingolin  torpedo  for  type  XVIII 
be  increased  at  the  expense  of  G  7a  production.  Commander  in 
Chief  Navy  concurred, 

-275-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943 

c.    Chief,  Torpedo  Branch  reported  that  tests  of  the 
Italian  war  pistol  for  G-  7  a  torpedoes  had  been  completed 
after  370  trial  shots  and  recommended  that  it  be  declared 
ready  for  operational  use.   The  pistol  is  slightly  less  sen- 
sitive than  our  Pi  2  and  can  also  be  used  in  the  G  7  a  Fat. 
The  firing-depth  corresponds  approximately  to  that  of  the 
Pi  2.  As  it  is  planned  to  remove  the  weather  restrictions  in 
regard  to  the  use  of  non-contact  firing,  the  previous  disad- 
vantage of  having  to  withdrawing  the  torpedo  in  order  to  change 
the  tvpe  of  firing  is  eliminated.   The  introduction  of  magnetic 
firing  also  for  the  G  7  &,  can  therefore  only  be  advantageous 0 
The  only  defect  of  the  Italian  pistol  is  depth  detonation  after 
sinking  which  has  not. yet  been  entirely  completely  overcome, 
but  which  Torpedo  Experimental  Section  hopes  to  eliminate.  Ob- 
jections on' the  part  of  Naval  Staff,  Submarine  Division  con- 
cerning this  defect  have  been  refuted  by  Torpedo  Branch* 

Commander  in' Chief  Navy  approved  the  declaration  of  operation- 
al readiness 0 

B .    Conference  on  the  Situation: 

I.    During  the  Black  Sea.  situation  report  by  Naval 
Staff,  Operations  Division  I  a >; Chief,  Naval  Staff  ordered 
that  his  appreciation  of  the  increase  in  our  naval  activity  in 
that  area  be  conveyed  to  all  concerned  as  occasion  arises, 

^•«   Naval  Staff,  Quartermaster  General  reported  that 
the  new  battery  near  Bergen  is  ready  for  action.  The  21  cm 
guns  ceded  by  Army  Group  North  to  the  Navy  for  coastal  defense 
in  southern  Italy  will  reach  the  Naples  area  by  26-27  Jul. 
They  are  unlikely  to  be  very  useful  against  sea  targets  due  to 
their  low  rate  of  fire  (one  round  per  minute).  The  present 
allotment  of  ammunition  must  also  be  increased. 

Within  a  Highly  Restricted  Circle: 

III.'    Naval  Staff,    Operations  Division,    Chief  of  Opera- 
tions  Branch,   Armed  Forces,   High  Command,   Operations  Staff, 
Supply  and  Transportation  Office  of  the  Armed  Forces  Overseas 
has  now  issued  directives  by  which   the  main  responsibility  for 
sup- lying  Greece  is  transferred  to  the  Black  Sea-Dardanelles 
traffic .      Thus,    only  four  ships  will  go  via   Trieste  in  August, 
Shipping  traffic  between  Trieste  and  Peraeus  will  be  organized 
so  that  about   50$  of  the  ships  will  always  be  north  of  the 
Otranto  Straits  and  50$  south  thereof.      For   copy  of  the  di- 
rective'as  per  l/Skl  20669/43  Gkdos.see  War  Diary  Part  C, 
Vol.   XV. 


_276-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943 

IV.  Chief,  Naval  Staff,  Operations  Division  supported 
the  suggestion  of  Commander  Submarines  West  that  the  Japanese 
submarine  FLIEDER  be  taken  in  to  Brest  instead  of  Bordeaux* 

Chief,  Naval  Staff  concurred,, 

v*    Chief  of  Staff,  Naval  Staff  again  raised  the  sub- 
ject of  the  employment  of  the  fleet  this  autumn  and  opened  a 
discussion  as  to  whether  a  way  could  be  found  to  avoid  all 
units  afloat  at  home  bases  being  used  exclusively  for  training 
purposes  without  the  possibility  of  bringing  their  fighting 
value  to  bear  at  this  particularly  critical  moment.  It  should 
be  investigated  whether  the  training  of  cadets  -  insofar  as 
warships  were  essential  thereto  —  could  not  be  done  with  the 
battle  formations  in  Norway. 

.Naval  Staff,  Quartermaster  General  commented  that  the  1943 
naval  construction  program  neccessitates  training  on  a  very- 
large  scale „ 

Chief,  Naval  Staff,  Operations  Division  considers  it  most  de- 
sirable to  have  another  battle  worthy  ship,  in  addition  to  the 
SCHARNHORST,  in  the  northern  area  in  winter  also,  but  is  doubt- 
ful of  the  training  possibilities  even  with  the  fleet. 

Chief,  Naval  Staff  recalled  that  the  war  at  sea  centered  on 
the  submarine  campaign  which  is  entirely  dependent  on  the 
standard  of  training.  The  younger  the  commanders  and  the 
more  inexperienced  the  crews  of  the  submarines,  the  more  strong- 
ly does  this  apply.  If  their  training  were  turned  over  to  the 
fleet  formations  it  would  certainly  have  an  adverse  effect. 
On  the  other  hand  it  is  highly  undesirable  to  leave  the  SCHARN- 
HORST alone  in  the  northern  area.  The  whole  problem  must  be 
re-examined.   The  most  suitable  vessel  to  transfer  to  Norway 
would  be  the  3CHESR,  in  view  of  the  fuel  situation  and  the 
qualifications  of  her  commandar,  although  the  difficulties  of 
engineer  training  at  home  would  almost  be  insurmountable. 

As  a  first  step  it  will  now  be  examined  to  what  extent  the  po- 
sition could  be  relieved  by  accommodative  recruits  in  the  Fleet 
flotillas. 

Special  Items: 

I,    A  memorandum  on  the  conference  between  Chief  of  Staff, 
Naval  Staff  and  Rear  Admiral  Abe  on  19  Jul.  was  made  as  per 
Order  of  l/Skl  ops.  2058/43  Gkdos.  Chefs.  For  copy  see  War 
Diary  Part  C  Vol.  XV.  It  consists  mainly  of  information  on 


-277-  CONFIDENTIAL 


ONFIDEKTIAL 
21  Jul.  1943 

our  assessment  of  the  situation  in  the  Mediterranean  and  on 

the  ^Eastern  Front.  "Rear  Admiral  ^be  was  also  advised  of  our 
d  to  start  submarines  operations  in     northern  Indian 
.  'bout  the  beginning  of  October,  and  of  our  interest  in 

the  extent,  i    Lts  and  -ixperiences  of  Japanese  submarine  op— 
"ions  in  that  are 

II.  11  owing  the  Japanese  Naval  Staff's  negative  reply  in 
regard  to  the  cession  t  submarines  (see 
War  Diary  20  Jul.),  Naval  Staff  has  again  approached  the  Jap- 
anese Navy  with  a  request  for  cession  of  two  Japanese  transport 
submarines,  or  large  submarines  suitable  for  transport  purposes 
for  the  transport  ::  ca     .ouc.   The  lack  of  raw  caoutchouc 
supplies  can  sc  seriously  affect  the  whole  course  of  the  war 
that  all  the  available  resources  of  the  Tripartite  Fact  will 

re   to  be  used  in  order  to  avert  the  three    3  emergency  and 
to  bridge  th     until  the  merman  transport  submarines  under 
construction  can  take  over  the  task  at  the  end  of  1944. 

For  copy  of  the  corresponding  letter  l/Skl  I  ops  2051/43  Gkdos. 
Chefs,  to  Rear  Admiral  Abe  see  VvarDiary  Part  C,  Vol.  IX. 

III.  -Naval  Staff,  Submarine  Division  and  Bin    af  Naval  arra- 

:nt,  Naval  Tr    :e  Division  Torpedo  Branch  have  disapproved 
the  development  of  a  "'0ne-m->n  torpedo"  as  submitted  for  consid- 
eration by  FSP  (Research  -  Invention  -  Patents  Department). 
-reroval  would  be  granted  only  on  such  terms  as  to  make  further 
development  by  the  Navy  practically  impossible.  Naval  Staff, 
Operations  Division  made  the  following  st    ;-nt  on  this  natter; 
Our  naval  war  is  at  a  stage  in  which  it  forced  more  than  ever 
on  to  the  defensive.  Although,  for  the  ten;-  being,  it  will  not 
be  possible  to  undertake  large  affensives  -  except  in  the  sub— 
marine  campaign  -  it  is  nonetheless  necessary  to  retain  the 
initiative,  even  in  our  present  defensive  position,  by  scrties 
calculated  to  harrass  the  enemy  and  keep  him  in  a  continuous 
st;    :  unrest.  In  certain  circumstances  it  will  be  possible 
to  deal  heavy  blows  by  destroying  important  installations  and 
special!--  ".luable  ships,  thereby  disrupting  and  frustrating 

ny  preparations  for  operations.  For  these  isolated  ac- 
tions 'special  weapons  are  required  which  are  still  ec  be  de- 

;ed.   ?:-..;-  muse  be  capable  of  achieving  big  results  with 
con  .  itively  small  in-:    eat  ~f  material  and  personnel. 
This  will  be  possible  only  if  -  in  addition  to  other  things  - 

.  explosive  can  be  approached  quickly  and  unobtrusively  to 
th-    'get,  A  device  that  can  travel  under  water  would  ap- 
pear the  most  suitable  for  this  purpose.'1  ICaval  Staff,  Opera- 
tions Division,  by  order  of  Chief  of  Staff,  I  aval  Staff  has 
M     aval  Staff,  Quartermaster  Division  to  design  a  "midget 
submarine"  or  "one-man  torpedo"  such  as  to  meet  the  following 
requirements: 

_278-  .  "in:"..! 


CONFIDENTIAL 
21  Jul.  1943 

1.'  .  Unobserved  approach  of  the  explosive  to  the  tar- 
get (ship,  harbor  installations  etc), 

2.  Speed  of  2  up  to  at  least  15  knots. 

3.  Range  of  submerged  navigation  200  miles.  If  start- 
ing from  a  parent  submarine  and  returning  thereto,  the  range 
may  be  correspondingly  reduced s 

4«    Crew  of  1-3  men* 

5.    Possibility  of  escape  for  the  crew  after  leaving 

the  explosive * 

In  order  to  facilitate  and  to  expedite  construction,  any  in- 
formation that  may  be  available  on  Italian  and  possibly  also 
on  Japanese  weapons  of  this  kind  should  be  used  as  much  as 
possible. 

IV.   Effective  7  Jul,,  the  following  functions  were  transferred 
from  Armed  Forces  High  Command,  Operations  Staff  to  the  Reich 
Minister  for  Armaments  and  Am  unition: 

1.  Information  on  the  effect  of  enemy  military  action 
on  our  war  economy, 

2.  Registration  and  classification 'of  undertakings 
of  war  interest  for  purposes  of  air  defense0 

3.  Air  raid  protection  for  industries. 

4*  Civilian  and  police  protection  for  industries. 

5.  Counter  intelligence  in  industries  of  war  interest* 

6.  Visits  by  foreigners  to  industries  of  war  interests 

7.  Patents  and  licences. 

8.  Patent  legislation 

9.  Denunciation  and  black-listing  of  firms, 

10.  Requests  to  Supreme  Command  of  the  Armed  Forces, 
Operations  Staff  for  Reich  Labor  Service  forces  to  be  used  in 
the  armament  industries. 


-279-  CONFIDENTIAL 


CONFIDENTIAL- 
21  Jul.  1943 

The  respective  orders  of  Armed  Forces  High  Command  so  far  in 
force  on  these  matters  T  ill  be  taken  over  and  maintained  by 
the  Reich sminister  for  Armaments  and  Amiunition.   The  person- 
nel presently  handling  these  matters  will  be  placed  at  the 
disposal  of  the  Reichminister  for  Armaments  and  Ammunition 
Armaments  Deoartment  by  Armed  Forces  High  Command,  Operations 
Staff; 

V.    Radio  intercept  report  No  a  29/43  contains  a  summary  of 
data  on  the  enemy  obtained  by  Radio  Decoding  and  Radio  In- 
telligence for  the  period  12-18  Jul0 

Attention  is  called  to: 

page  4/5  -  Submarine  hunting  in  the  Bay  of  Biscay 0 
page  7   -  Operations  by  18th  and  19th  Groups  of  the 
Royal  Air  Force a 

Situation  on  21  Jul.  1943 

I„ Warfare  in  Foreign  Waters: 

1.    Enemy  Situation: 

From  loading  orders  issued  on  6  Jul.  from  Cape- 
town to  London  and  Cairo,  it  is  evident  that  steamers  loading 
in  South  African  ports  go  home  via  Suez.  The  corresponding 
orders  were  as  follows: 

1.  Due  to  the  lack  of  cargo,  especially  copper 
at  Lourenso  Marques  and  Beira,  all  steamers  now  starting  to 
load  and  going  home  via  Suez  will  take  on  copper  and  other 
cargo. 

2.  Steamers  from  the  Middle  East,  which  can 
bring  homebound  cargo,  will  go  to  Eira  or  Lourenso  Marques  and 
load  there  before  going  north. 

3c    Not  much  cargo  except,  sugar  will  be  available 
at  ports  in  the  Union  of  South  Africa  during  the  next  few' 
months.  Two  or  three  steamers  returning  to  England  via  the 
Atlantic  will  probably  be  sufficient  for  the  program. 

Naval  Staff,  Naval  Intelligence  Division  has  been  instructed 
to  make  an  estimate  of  the  effect  on  the  Cape  Town  and  South 
Atlantic  Shipping  traffic  if  the  Mediterranean  route  were 
brought  back  into  full  use. 

2„    Own  Situation: 

-280-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.   1943 

The  CHARLOTTE  3CHLIEMANN  reports  via  Tokyo  that  ' 
our  submarines  will  not  need  more  supplies  until  mid-October. 

Naval  Attache _,  Tokyo  reports  that  the  home-mail  for  Ship  "10" 
and  for  the  crew  of  the  UCKERMARK  is  overdue.  Naval  Staff 
has  advised  Naval" Attache,  Tokyo,  for  information  of  Ship  "28", 
by  radiogram  128?.  of  the  reasons  for  the  non-arrival  of  the 
mail  in  Japan ^ 

The  Japanese  Naval  Staff  has  approved  the  plan  to  release 
news  on  the  visit  of  the 'auxiliary  cruiser  Ship  "10"(TH0R) 
for  publication  in.  Japan. 

Executive  Office  of  the  Commander  in  Chief  Navy  Administrative 
Staff,  has  been  asked  to  arrange  the  subject  matter  and  time 
^  of  publication  with  the  Japanese  Naval  Attache, 

General  reports  and  pictures  on  the  auxiliary  cruiser's  visit 
to  Japan  may  be  published.  Operational  details  and  dates  are 
to  be  suppressed. 


iv  ,/ 


:•   ■ 


► 


II.   Situation  West  Area: 

1.  Enemy  Situation: 

Twenty-five  planes  were  detected  over  the  outer 
Bay  of  Biscay  up  to  Cape  Ortegal.   British  vessels  were  de- 
tected at  094S  in  BE  3250  and  between  192?  and  2157  in  BE 
3180,  3510,  3560,  and  3879  as  well  as  one  USA  vessel  at  1743 
in  AL  6750. 

Our  air  reconnaissance  reported,  at  0820,  one  SOUTHAMPTON- 
class  cruiser  sailing  north  at  a  high  speed,  220  miles  west 
of  Brest 'and,  at  2055,  a  convoy  of  14  merchantmen  with  5  de- 
stroyers, 3  guard  ships' and  1  flying  boat,  on  a  southerly 
course  at  a  speed  of  11-17  knots  in  25  W  /  6044  (430  miles 
west  of  Brest). 

According  to  an  intelligence  report  from  London  via  Madrid, 
the  preparations  observed- in  South  Wales  are  for  maneuvers 
which  are  to  begin  within  the  next  days  and  are  not  indicative 
of  immediate  offensive  plans. 

2.  Own  Situation: 
Atlantic  Coast: 

Two  ELM/J -mines  were  cleared  off  Lorient.  A 

-281-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943  !  " 

submarine  which  was  unable  to  submerge  was  escorted  by  three 
minesweepers  from  the  outer  point  Kern  to  Brest.  Submarine 
U  "558"  has  not  reported  since  noon  on  20  Jul.  5th  Torpedo 
boat  Flotilla  turned  back  from  BF  5744  at  1000  without  per- 
forming its  mission0   Both  torpedo  boats  anchored  at  La  Pallice 
at  0200  on  22  Jul.  Submarine  U  "558"  must  be  presumed  lost. 

Channel  Coast: 

Nothing  to  report. 

IIIc  North  Sea{  Norway,  Northern  Waters: 

North  Sea: 

Nothing  special  was  reported  except  the  clearing  of  two 
ELM/ J '-mines  north  of  Tershelling.  Escort  and  patrol  services 
were  carried  out  according  to  plan. 

Norway,  Northern  Waters: 

1.  Enemy  Situation: 

Radio  Intelligence  detected  19  planes  over  the 
North  Sea  but  no  operating  planes  in  the  area  of  the  Iceland 
Squadrons,  It  also  detected  the.  Russian  submarine  M  "200" 
at  sea  for  the  first  time,  presumably  on  a  trial  run. 

According  to  photographic  interpretation,  there  were  3  destroy- 
ers, 1  torpedo  boat,  2  submarines,  2  tankers,  10  freighters  at 
KolsPci  Bay  on  20  Jul.  and  8  submarines  in  the  Polyarnoye  naval 
port.   Four  destroyers  were  leaving  the  Kurabelnoye-mouth . 
There  were  20  freighters  and  1  tanker  at  Arkhangelsk  and  8 
freighters  and  1  destroyer  at  Molotovsk* 

According  to  an  intelligence  report  a  big  cruiser  put  in  to 
Hvalfjord  at  about  1000  on  20  Jul.  A  convoy  of  4  steamers 
in  ballast  together  with  1  escort  boat  and  1  corvette  left 
Reykjavik  at  1800  on  20  Jul. 

2.  Own  Situation: 

No  particular  observations  were  r.nde  in  the  coastal 
waters  off  Vardoe  after  visibility  improved,  such  as  to  give 
any' indication  of  the  alleged  enemy  operation  reported  on  20 
Jul. 

An  enemy  submarine  unsuccessfully  fired  four  torpedoes  at  one 

-282-"  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943 

of  our  convoys  of  5  steamers,  strongly  protected  by  5  patrol 
boats  and  5  submarine  chasers,  off  the  Kongsfjord  at  1430. 
,/lt  1918  and  1928  the  convoy,  moored  in  the  Busscfjord,  was 
.repeatedly  attacked  by  six  fighter  bombers.  At  2225,  four 
enemy  planes  again  attacked  the  convoy  in  the  Bussefjord 
with  bombs  and  gunfire.   Casualties  were  caused  on  two  of 
the  submarine  chasers.  No  other  damage  was  done, 

With-  reference  to  these  attacks,  the  5th  Air  Force  reports 
that,  in  spite  of  fighter  protection  and  bad  visibility,  they 
were  repulsed  with  heavy  losses  to  the  enemy.  (See  teletype 
2230). 

The  escort  service  convoyed  32  ships  to  the  north  and  21  ships 
to  the  south  as  well  as  22  northbound  smoke  carriers.  Delay 
was  again  caused  Ly  lack  of  escort. 

Destroyer  Z  "28"  is  en  route  from  Harstadt  to  Trondheim  and 
the  LODY  en  route  through  the  skerries  between  Tromsoe  and 
Alta  escorted  by  motor  minesweeper  R  "89" • 

Commander  Submarines,  Norway  has  forwarded,  for  information 
the  operational  order  for  submarine  U  nl69"  regarding  the 
patrol  mission  north  and  northeast  of  Iceland,,  The  boat  will 
leave  Hammerfest  on  22  Jul.  and  has  been  ordered  to  report  ap- 
proximately every  week  on  the  traffic  situation  in  AA  98  and 
to  give  immediate  advise  by  short  signal  of  naval  forces  from 
cruisers  upwards,  convoys,  and  heavy  traffic  of  single  vessels* 

Submarines  U  "601"  and  "625"  have  reported  by  short  signal 
completion  of  mine  laying  off  Bclushiya  Bay  and  Yugor  Straits*, 
Submarine  U  "586"  and  "629"  have  put  out  as  scheduled  for  mine 
laying  operations.  U  "255"  to  supply  the  BV  138  on  the  east 
coast  of  Novaya  Zemlya,  and  U  "711"  for  operations  in  the  Kara 
Sea. 

U  "355"  was  fired  upon  from  the  shore  by  artillery  of  small 
.calibre  while  re conno iter ing  off  the  west  coast  of  Spitzbergen 
near  Advent  Bay.  U  "355"  was  shelled  by  small  caliber  guns 
on  shore.  The  boat  blew  up  a  radio  mast  at  Calypso  Bay, 

IV w   Skagcrrak.  Baltic  Sea  Entrances/Baltic  Sea: 

Mine  clearance  vessel  "11"  has.  cleared  a  total  of  49  UMA 
.mines  in  the  Skagen  barrage,,  A  fishing  smack  of  Admiral  Den- 
mark sank  in  the  southern  exit  of  the  Sound  after  a  mine  ex- 
plosion. One  ELM/J  was  cleared  southwest  of  ^nholto 

Convoy  and  transport  traffic  throughout  the  Baltic  Sea  area 

-283-  CONFIDENTIAL 


cc::?idzmtial 

21  Jul.  1943 

was  carried  out  to  schedule  and  without  incident. 

In  an  encounter  between  Finnish  PT  boats  and  Russian  guard- 
boats  north  of  Lavansaari  during  the  night  of  20  Jul.,  one 
Russian  boat  was  set  on  fire.   Mine sweeping  in  the  Irben  Nar- 
rows was  continued.  There  was  strong  enemy  air  activity. 
The  Dubnia  Battery  and  the  harbor  of  Peipia  were  unsuccess- 
fully attacked  in  the  forenoon  and  one  of  our  formations  was 
attacked  in  the  afternoon  south  of  Tuetters,  casualties  being 
caused  on  SAT  "Helene", 

V. Submarine  Warfare: 

1,  Enemy  Situation: 

Submarine  U  "190"  reports  traffic  of  fast  unac- 
. companied  ships  on  the  southern  edge  of  CA,  on  courses  20c 
and  200°,  and  also  outgoing  and  incoming  convoys  on  constantly 
changing  routes.   A  convoy  coming  in  on  26  Jun.  had  strong 
night  air  protection, 

2.  >wn  Situation: 

Of  the  convoy  of  7  steamers  which  sailed  from 
Lisbon  and  was  attacked  by  submarine  U  "455"  entered  Gibral- 
tar, so  that  one  ship  may  be  presumed  sunic.  U  "190"  which 
had  been  presumed  missing  has  fortunately  reported  againa 

In  DN  36,  U  "66"  pursued  a  U.S.  tanker  which  disappeared  from 
sight  with  an  increasing  list. 

U  "664"  drove  off  repeated  air  attacks  in  the  Bay  of  Biscay. 
U  "558"  must  unfortunately  be  presumed  lost. 

Vie   Aerial  Warfare: 

British  Isles  and  Vicinity: 

Except  for  the  reconnaissance  reports  of  Air  Commander 
Atlantic  (see  Enemy  Situation  West  Area),  no  special  reports 
have  been  received,, 

Mediterranean  Area: 

During  the  night  of  20  Jul.,  56  of  our  planes  were  sent 
out  against  shipping  targets  in  the  Augusta  area.  One  tanker 
was  sunk,  1  steamer  probably  sunk  and  3  freighters  were  dam- 
aged. Two  of  our  planes  were  lost.  At  noon,  the  enemy  made 
a  heavy  attack  on  Grosseto  and  during  the  night  of  21  Jul., 

_284-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943 

small  forces  attacked  Naples  with  bombs  and  gunfire ,     Two 
enemy  planes  were  reported  shot  down  by  anti-aircraft  fire„ 

Eastern  Front; 

Aoart  from  the  success  of  the  5th  Air  Force  fighters 
near  Vardoe  (see  Situation  in  the "Northern  Uaters),  no 
special  events  have  been  report ed0 

VII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

1.    Enemy  Landing  in  Sicily: 

Situation  on  Land: 

On  20  Jul.,  Enna  was  occupied  by  the  enemy.  On 
21  Jul.,  it  was  generally  quiet  on  the  fronts  of  both  divi- 
sions. 

Situation  at  Sea: 

Our  air  reconnaissance  was  limited  and  no  new  in- 
formation on  the  Sicilian  area  was  obtained.   Supplies  are 
being  disembarked  in  the  harbors  at  night,  while,  during  the 
day,  the  enemy  naval  forces  apparently  stand  far  off  to  sea. 
From  0150  on,  Crotone  was  bombarded  by  six  enemy  vessels. 
1st  PT  Boat  Formation  had  been  i^/arned  and  had  been  able  to  move 
to  Taranto  earlier.  Operations  from  there  will  depend  on  the 
arrival  of  torpedoes  from  the  former  base  at  Salerno.  For 
the  brief  report  of  Commanding  Officer,  llessina  Strait  De- 
fenses on  the  encounter  with  the  enemy  at  0102  on  20  Jul.,  see 
teletype  0835.  The  enemy  sheered  off  after  hits  had' been 
scored.  No  damage  was  done  to  our  four  minesweepers «, 

Submarine  U  "SI"  penetrated  the  harbor  of  Syracuse  and  torpedoed 
a  troop  transport  of  12,0.00  BRT  which  was"  apparently  grounded. 
Two  torpedoes  exploded  in  the  net  barrage. 

No  action  reports  have  been  received  from  the  Italian  submarines. 
In  the  enemy  air  attack  on  Ionia  on  20  Jul.,  2  naval  landing 
craft  were  destroyed. 

During  the  night  of  19  Jul.,  Italian  torpedo  planes  reported 
a  probable  hit  on  a  vessel  of  4  -  5,000  BRT, 

According  to  submarine  reports,  there  were  about  60  ships  35 
miles  southeast  of  Cape  Passero  at  1325  on  21  Jul.  No  further 
details  were  given* 

-285-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943 

According  to  second  evaluation  of  photographic  reconnaissance, 
the  battleship  that  was  north  of  Augusta  on  19  Jul.  was  prob- 
ably of  the  TEXAS  class. 

In  the  lack  of  air  reconnaissance,  it  is  not  possible  to  get 
a  clear  picture  of  the  location  of  the  enemy  landing  forces, 
There  are  therefore  no  clues  as  to  the  likelihood  of  further 
enemy  landings  in  west  or  north  Sicily  or  in  other  areas  of 
the  Central  and  Eastern  Mediterranean,,  This  is  one  result 
of  the  enemy's  strong  aerial  superiority  which  is  the  main 
characteristic  of  the  whole  Mediterranean  situation. .   It  is 
this  above  all  that  enables  the  enemy  to  exploit  his  almost 
unchallenged  control  of  the  sea.  The  combination  of  there 
two  factors  offer  an  illustration  of  modern  sea  -  and  aerial 
warfare  in  connection  with  large-scale  landing  operations 
which  ,  looking  back  on   our  own  position  in  the  summer  of 
1940  and  the  difficulties  opposing  our  "Seeloewe"  plan,  is 
highly  instructive,, 

The  loss  of  one  of  our  submarines  in  the  Straits  of  Messina 
and  the  continuously  expected  penetration  of  this  area  by 
enemy  naval  forces  and  submarines  necessitate  special  pro- 
tective measures  for  our  shipping  -  and  supply— traffic.  Naval 
Staff  has  instructed  German  Naval  Command  Italy,  and  Commander 
Submarines,  Italy  for  information  that,  besides  enforcing  the 
exchange  of  ship-to-ship  and  ship-to-shore  recognition  sig- 
nals between  all  German  and  Italian  forces  in  the  area,  other 
steps  must  be  instituted  for  the  protection  of  our  submarines 
such  as  compulsory  convoy  and  the  establishment  of  time  sched- 
ules for  passing  given  points.  A  report  is  to  be  submitted 
on  what  other  similar  measures  can  be  taken  and  are  contem- 
plated. For  copy  of  the  directive  l/Skl  I  m  20467/43  Gkdos 
see  War  Diary  Part  C,  Vol.  XIV. 

Armed  Forces  High  Command,  Operations  Staff  op  has  forwarded 
the  experience  reports  of  Commanding  General  .^niied  Forces  South 
dated  13  Jul.,  on  the  latest  fighting  in  Sicily,  Amongst  other 
things,  emphasis  is  laid  on  the  effectiveness  of  naval  ar- 
tillery against  land  targets,  \vrhich  acquires  special  impor- 
tance in  regard  to  the  fighting  throughout  the  Italian  area. 
Also  of  importance,  is  the  practical  experience  that  opposi- 
tion to  the  landings  themselves  calls  for  the  strongest  pos- 
sible core ent ration  of  defense  in- v^iich  part  of  the  Reserve 
artillery  must  also  be  employed, -as  Commanding  Admiral,  Naval 
Group  West  had  already  requested  some  time  ago.  The  use  of 
sea-  and  land-mines  off  the  landing  places  should  also  be 
increased.   Naval  Staff  has  passed  on  these  items  to  Group 
Sough  and  Admiral  Aegean,  and,,  for  information  to  Groups  North 


-286-  CCNFIDENTLiL 


CONFIDENTIAL 
21  Jul.  1943 

and  West  and  Naval  Commands  Norway,  East  and  North  by  Order 
1/Skl  21302/43  geh.  For  copy  see  War  Diary  Part  C,  Vol.  X0 
Naval  S^-aff  has  forwarded  a  Mediterranean  Situation  report  to 
Groups  North  Fleet,  West  and  South  and  German  Naval  Command, 
Italy,  in  which  it  is  stated  that  further  developments  depend 
mainly  on  the  possibility  of  defending  northeastern  Sicily 
with  new  German  troops,  on  controlling  the  Straits  of  Messina 
and  on  the  air  defense  of  the  Italian  mainland.  There  are  no 
indications  as  to  where  new  landings  are  being  prepared.  For 
the  full  text  as  per  Order  l/Skl  20504/43  Gkdos  see  War  Diary- 
Part  C,  Vol.  XIV. 

2„    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

According  to  an  Intelligence  report  from  Spain,  12 
transports  which  left  Gibraltar  on  17  Jul,  to  the  west  had  on 
board  about  10,000  French  and  Algerian  troops  as  well  as  wound- 
ed, prisoners  and  refugees  destined  for  England;,  According  to 
another  Intelligence  report  of  13  Jul.  from  London  via  Madrid, 
11  boats  of  11th  Submarine  Flotilla  put  to  sea  on  6  Jul.  from 
bases  in  the  Isle  of  Wight  area  for  Gibraltar  or  the  Eastern 
Mediterranean.   The  boats  were  completed  between  January  and 
May  in  shipyards  at  Hull,  The  smallest  type  is  of  690  tons 
displacement.   They  are  said  to  be  intended  for  patrolling  the 
Adriatic. 

At  1800  on  20  Jul,  our  air  reconnaissance  reported  a  convoy 
of  16  freighters  with  9  defense  vessels  on  a  westerly  course 
50  miles  north-northwest  of  Sidi  Barani.  German  Naval  Com- 
mand., Italy  believes  they  are  destined  for  Malta,  which  would 
confirm  the  fact  that  further  supplies  for  Sicily  are  being 
brought  from  the  east. 

Submarines  were  reported  at  positions  north-northeast ' of  Bastia, 
north  of  Ajaccio,  east  of ', Bastia  and  south  of  Taranto„ 

No  other  important  sighting  reports  were  received  on  21  Jul. 
from  the  Western  or  Eastern  Mediterranean. 

3.    Own  Situation  in  Other  Parts  of  the  Mediterranean 

—       I  MM       I-        «■■!!■     ■■■     ■      — ■        I  p-     ■-     ■  .■  ■      ■■■  '■  '■  ■  —    '     ■■■■■■■»■■-     ■■■  '     —     —  '    ■    ■    ■     »  ■  -■        ■    ■  !■■    I    — 

Sea  Transport  Situation:  V 

The  BRANDENBURG  and  the  POMLSKN  have  completed 
their  minelaying  according  to  schedule  and  put  in  to  Toulon. 
Two  freight  barges  left  Toulon  for  Genoa  and  a  third  left  for 
Savona.  Thus  the  furst  freight  barges  have  taken  up  their 
functions. 


-287-  CONFIDENTIAL 


::::r:rr.:~.-^- 

21  Jul,  1943 

-:.t  1530  on  19  Jul.,  tank-barges  MARIA  and  PAULA  were  attacked 
by  gunfire  from  an  enemy  submarine  north  "of  Porto  Vecchion 
The  MARL*  was  sunk  and  the  PAULA  damaged. 

-vt  1510,  on  21  Jul.,  motor  ship  0R3INI,  escorted  by  a  corvette, 
was  torpedoed  by  an  enemy  submarine  18  miles  east-northeast  of 
Bastia  and  is  to  be  towed  in  to  Porte  Ferraio.  Early  on  21 
Jul-.,  one  of  our  convoys  on  the  Sardinia  route  was  unsuccess- 
fully attacked  by  eleven  enemy  planes  southwest  of  Elba*   The 
convoy  entered  Bastia  in  the  afternoon,  2*o  reports  have  been 
received  on  the  transport  submarines  RCI-lOLC  and  REMD  which 
are  enroute  from  Naples  to  Messina,  or  on  the  convoy  of  steam- 
er INGEBORG  with  torpedo  boat  T;*  "10"  en  route  from  Bari  to 
Piraeus , 

4,    .-^r^a  Naval  Group  South: 

Aegean: 

Baegg  Situation: 

.'-.c  cor  ding  to  an  Intelligence  report  of  20  Jul, 
from  Athens,  the  British  are  setting  up  bases  or  observation 
posts  at  various  strategic  points  in  the  Greek  area  for  the 
purpose  of  making  and  maintaining  contact  with  submarines, 
gaining  information  on  our  positions  and  measures  and,  if 
necessary,  giving  guidance  to  landing  vessels.  Such  points 
have  been  identified  at,  among  other  places,  Khalkidike  in 
the  Gulf  of  Salonika,  the  Gulf  of  Volos,  the  Maliakos  Bay, 
four  places  in  Euboea  and  four  places  in  the  Peloponnese. 
For  more  exact  location  see  teletype  1815. 

Another  Intelligence  report  of  15  Jul.  from  Tobruk  states 
that  Greek  troops  are  being  equipped  at  Tobruk  for  landing 
operations  in  the  Greek  area.  (See  teletype  1816.) 

During  the  night  of  19  Jul.,  3  planes  flew  into  Kish  (Serbia) 
area  to  supply  the  insurgents. 

Own  Situation: 

- 

Four  motor  minesweepers  have  been  moved  to  the 
Gulf  of  Salonika  to  re-check  the  enemy  mine  barrage.   The 
torpedoed  steamer  L0UL0UDES  has  been  towed  into  Piraeus,  Con- 
voy traffic  was  carried  out  without  incident. 

*  — - 

During  Jun,,    54  steamers  for  143,654  BRT  were   esccrted  in  the 

:;ean.     One  hundred  and  thrity -three  steamers  for  111,936  BRT 
and  1,940  auxiliary  sailing  vessels  for  63,804  BRT  sailed  with- 
out escorto      Thirteen  auxiliary  sailing  vessels  were  lost  by 

-283-  .TIDENTIAL 


CONFIDENTIAL 
21  Jul.  1943 

air  attacks,  8  by  submarines,  1  by  sea  damage  and  1  by  deser- 
tion to  Turkey. 

Group  South  reports: 

1.  The  development  of  the  situation  in  Sicily 
and  the  preparation  of  Anglo-American  forces  in  the  Central 
and  Eastern  Mediterranean  for  further  offensive  operations, 
call  for  strategic  reconnaissance  of  the  enemy's  assembly 
area. 

2,  The  concentrition,  date  and  probable  direc- 
tion of  the  enemy  offensive  can  be  established  only  by  reli- 
able strategic  reconnaissance.  The  Air  Force  must  cover  all 
the  jumping-off  areas  concerned.  Where  enemy  operations  can 
be  observed  by  other  means  (as,  for  example,  in  Sicily),  long 
distance  reconnaissance  will  not  be  necessary. 

3o    The  probable  jumping-off  area  of  the  enemy 
stretches  from  Sicily  to  Syria  and  Cyprus. 

The  material  available  to  Air  Force  Command,  Southeast  for 
long-range  reconnaissance  and  particularly  for  photographic 
reconnaissance  is  so  limited  that  strategic  reconnaissance 
cannot  be  done  on  the  scale  required  for  assessing  the  status 
of  enemy  preparations „ 

4«    In  the  present  situation,  tactical  recon- 
naissance off  our  coasts  is  of  lesser  importance. 

5.  Closest  cooperation  between  admiral  Aegean 
and  Air  Force  Command  Southeast  is  assured.   In  spite  of  ef- 
forts to  concentrate  on  strategic  reconnaissance,  the  forces 
of  Air  Force  Command  Southeast  are  entirely  inadequate  for 
the  purpose.  'f     ...  .,    -,./  .  ■  ; 

6.  In  order  to  prevent  strategic  surprise  in 
the  Eastern  Mediterranean,  particularly  in  view  of  the  weak 
defense  forces  in  the  Aegean  area,  reinforcement  of  suitable 
means  for  strategic  reconnaissance  is  urgently  required  by 
Air  Force  Command  Southeast  also  with  a  view  to  defense  duties 
of  the  Navy. 

Naval  Staff  has  informed  Air  Force  Operations  Staff  I  attached 
to  Navy  and  asked  that  a  report  be  made  to  Chief,  Air  Force 
General  Staff.   Air  Force  Operations  Staff  is.  fully  aware  of 
the  problem  but  is  able  to' do  little  about  it, due  to  the  short- 
age of  forces*         •  ' 


-289-  CONFIDENTIAL 


CONFIDENTLY 
21  Jul.  1943 

Black  Sea; 

1st  PT  Boat  Flotilla  transferred  its  operations 
on  the  night  of  20  Jul.  from  the  area  off  Vulantal  to  the 
Myshako  landing  bridgehead  as  the  flotilla  had  been  detected 
by  an  enemy  contact  plane.  At  1945,  while  outward  bound  8*" 
miles  west  of  Tuapse  the  flotilla  was  unsuccessfully  attacked 
with  six  bombs.  No  attacks  were  made  on  2  -  3  submarine  chas- 
ers and  5  -  6  PT  boats  sighted  south  of  Novorossisk,  because 
of  the  bright  moon  light.  No  supply  traffic  was  observed. 
The  flotilla  returned  without  incident  to  Ivanbaba. 

The  bombardment  of  the  enemy  land  front  was  carried  out  as 
planned  by  the  assigned  naval  artillery  lighters  and  motor 
minesweepers.  (See  War  Diary  20  Jul,).  For  results  and  de- 
tails, see  "Daily  Situation"  or  Situation  Reports  of  Admiral 
Black  Sea  in  teletypes  1320  and  2125.  The  group  off  Primorsko 
Akhtary  had  a  successful  engagement  with  enemy  motor  gunboats. 
Motor  minesweeper  R  "166"  was  hit  and  suffered  damage  and  cas^ 
ualties. 

The  operation  is  regarded  as  a  complete  success. 

It  is  planned  for  the  same  formation  to  repeat  the  bombardment 
east  of  Varcnovka  on  the  night  of  21  Jul.  and  the  operation 
has  already  begun. 

The  transfer  of  two  Italian  CB-boats  from  Constanza  to  Sevas- 
topol is  planned  for  22  Jul. 

During  an  unsuccessful  air  attack  on  146th  Anapa-transport  in 
the  southeastern  part  of  the  Kerck  Strait  at  1625,  1  of  the 
11  enemy  planes  was  shot  down  by  ships'  anti-aircraft  guns 
and  4  by  the  escorting  fighters.  Otherwise,  the  convoy-  and 
fan-j— bi- .' fi  r  tixvi   tjha  supply  service  were  carried  out  without 
special  events, 

219  ships  for  148,595  BRT  were  escorted  in  the  Black  Sea  dur- 
ing the  month  of  June.   Five  unsuccessful  submarine  attacks 
were  made  on  convoys  and  altogether  ten  unsuccessful  attacks 
on  naval  landing  craft  (transp  rts). 

The  steamer  BIRGIT  (1,972  BRT)  and  2  lighters  were  lost  by 
enemy  air  action,  1  naval  landing  craft,  1  lighter  and.l  mine- 
sweeper "by  mines,  and  the  railway  ferry  boat  VITEZ  was  lost 
by  fire. 


-290-  CONFIDENTIAL 


CONFIDENTIAL 
21  Jul,  1943  -     

Seventeen  FZ~mines  and  29  other  mines  were  cleared  and  10 
mines  were  blown  up. 

Our  PT  boats  destroyed  1  coastal  vessel  and  1  lighter  during 
the  month  of  Jun.  and  the  submarines  sank  1  escort  vessel,  1 
freighter  and  1  light erc 

VIII*  Situation  in  East  Asia: 

Nothing  to  report. 


22  Jul.  1943 

Items  of  Political  Importance: 

There  has  been  no  news  of  naval  interest. 

Conference  on  the  Situation  with  Chief.  Naval  Staff: 

Naval  Staff,  Quartermaster  General  reported  that  the  transport 
situation  between  Salonika  and  Athens  continues  to  be  bad. 
Traffic  to  Italy  has  also  been  blocked  during  the  last  few 
days.  The  GNEISENAU  Battery  is  still  held  up  at  the  Italian 
frontier.  Armed  Forces,  High  Command,  Operations  Staff  has 
already  been  approached  on  this  subject* 

No  other  special  reports  or  decisions  were  made. 

Special  Items: 

In  view  of  both  the  external  and  internal  threats  to  the  Bal- 
kan area,  the  Fuehrer  has  decided  to  send  another  «.rmy  Group 
to  the  southeast.  It  is  therefore  planned  for  General  Field- 
Marshal  Rommel,  as  Commanding  General,  Army  Group  B,  to  take 
over  command  in  Greece,  Crete  and  the  Aegean  Islands,  -  ex- 
cluding the  Aegean  Army  area  -  with  provisional  headquarters 
at  Salonika. 

Colonel  General  Loehr,  as  Commanding  General  of  Army  Group  E, 
will  retain  command  in  the  other  German-occupied  parts  of  the 
southeastern  area,  with  headquarters  at  Belgrade,,   The  designa- 
tion of  C.I.C.  Southeast  will  be  abolished. 

For  copy  of  the  corresponding  directive  by  Armed  Forces  High 
Command,  Operations  Staff  as  per  l/Skl  20580/43  Gkdos  see  War 
Diary  Part  C,  Vol.  XIV. 

-291-  CONFIDENTIAL 


CONFIDENTIAL 
22  Jul.  1943 

From  information  en  developments  in  the  Balkans  and  on  the 
enemy  concentration  in  the  Eastern  Mediterranean,  it  appears 
increasingly  possible  that  the  enemy  will  soon  start  opera- 
tions in  the  Greek  area.   The  command  in  this  area  has  been 
reorganized  in  accordance  with  a  recently  announced  order  of 
the  Fuehrer «  For  the  conduct  of  the  war  at  sea,  the  old  di- 
rective under  which,  upon  receipt  of  bhe  key- work  'Victoria', 
Naval  Group  South  will  assume  command  also  of  the  Italian 
C.O.s  and  fighting  forces,  remains  in  force* 

As  the  situation  is  be-:oiLlng  increasingly  serious,  it  appears 
necessary  to  put  the  'Victoria*  orders  into  force  now-. 

Armed  Forces  High  Commard,  Operations  Staff  op  stated  that 
Operations  Staff  had  been  preparing  an  order  on  this  subject 
which,  however,  had  been  pigeon-holed  in  view  of  the  outcome 
of  the  Fuehrer's  conference  with- the  Ducea  -Naval  Staff,  Op- 
erations Division  has  urged  Naval  Staff,  Quartermaster  Divi- 
sion, Organization  and  Mobilization  Branch  to  push  the  matter. 
The  first  step  car,  be  taken  by  Commander  Reiche  of  the  Organ- 
ization and  Mobilization  Branch,  who  is  going  to  Headquarters 
on  23  Jul.  for  conferences  with  Operations  Staff,  Quarter- 
master Division,  and  can  discuss  Naval  Staff's  demands  with 
Operations  Staff  op  (Navy)0  The  result  of  this  meeting  must 
be  awaited. 

In  this  connection,  Captain  Junge  stated  it  will  be  quite  a- 
greeable  to  Operations  Staff  if  the  Navy  continues  its  efforts 
to  penetrate  the  command  area  of  Italian  Naval  Command,  Morea 
without  awaiting  an  official  settlement. 

Situation  -v;i  22  Jul,  1943: 

I.    Warfare  in  Foreign  Waters:  ■  •• 

■ 

1,    Enemy  Situation: 

Laurenco  Marques  has  forwarded  an  interrogation 
report  on  a  ship  wrecked  Norwegian  sailor,  'The  man  stated  . 
that  28,000  tons  of  oil  were  being  shipped  daily  from  Abadan 
to  Australia  and  New  Zealand,  especially  for  submarines  at 
Freemantle.   There  are  said  to  be  15  submarines  stationed  at. 
Freemantle  and  7  at  Sidney,  each  of  2,200  tons.  One  tanker 
(generally  Norwegian)  leaves  Abadan  almost  daily  with  Diesel 
oil  and  gasoline  for  South  Africa  and  one  British  tanker  a 
week  with  15,000  tons  of  oil  for  Capetown.  Every  week  two 
convoys  of  about  20  ships  pass  Durban  going  north. 


.292-  CONFIDENTIAL 


CONFIDENTIAL 
22  Jul.  1943. 

2„    Own  Situation: 

As  no  further  reports  have  been  received  since  the 
QQQQ  report  of  30  Jun.,  Naval  Staff  assumes  that  Ship  "28" 
is  on  her  way  to  the  Pacific  Ocean  and  has  perhaps  reached 
the  operational  area  by  now„  Ship  "28"  has  been  advised :of  ■ 
this  assumption  by  radiogram  0020  and  it "was  added  that  con-  ' 
firmation  or  correction  is  not  necessary* 

All  ships  in  foreign  waters  have  been  informed  of  the  enemy 
situation  by  radiogram  0148  or  2134t 

II.   Situation  West  Area: 


1.  Enemy  Situation: 

Fifty-two  planes  were  detected  operating  in  the 
area  of ' 19th  Group,  Locations  were  made  from  0555  to  2123  in. 
BD  6330,  AL  96  and  9930,  BE  9250,  9180,  and  BD  4420* 

The  southbound  convoy  reported  at  2055  on  21  Jul.  in  BE  3454 
was  again  observed  by  our  air  reconnaissance  at  1330  in  BE 
5675*  Also  reported: 

At  1015,  a  merchantman,  escort  vessels,  1  destroyer  and  1  air- 
craft carrier  sailing  south  in  BE  6942  and,  at  1520,  3  destroy- 
ers at  high  speed  on  course  200°  in  BF  7534.  None  of  these 
movements  will  affect  the  bringing  out  of  our  submarines  b"1- 
8th  Torpedo  Boat  Flotilla©  Armed  Forces  High  Command,  Intel- 
ligence Division,  Secret  Intelligence  Branch  has  received  the 
following  reports  from  two  reliable  agents  in  Bordeaux  on  17 
and  19  Jul.: 

1*    Preparations  for  an  extensive  invasion  of 
France  are  completed  and  a  landing  may  therefore  be  expected 
any  day.  As  Landing  places,  Brittany  was  mentioned  and  St. 
Nazaire  for  certain. 

2.    The  British  preparations  for  invasion. are 
so  far  advanced  that  under  pressure  from  Moscow,  major  or 
minor' landing  operations  along. the  whole  of  the  Atlantic 
front,  may  be  counted  on  within  the  next  few  weeks. 

2.  Own  Situation: 

Atlantic  Coast: 

>  ■  •  ■ 

One   ELM/ J  mine  was  cleared  off  Lorient  and  one 
off  St.   Nazaire „ 

-293-  .CONFIDENTIAL 


;   Vl5 : 


CONFIDENTIAL 
22  Jul.  1943 

The  MOEWE  and  torpedo  boat  T  "19"  entered  La  Pallice  at  0830. 
The  GREIF  and  the  F..LKE  left  Brest  at  0800  on  submarine  es-- 
cortj  and  Sth  Torpedo  Boat  Flotilla  with  destroyers  Z  "24", 
"32",  "37"  left  Royan  at  1200  for  escort  duties.  One  of  the 
three  boats  to  bo  escorted  turned  back  because  of  damage, 
Air  Commander  Atlantic  has  provided  strong  convoy  escort  for- 
ces which  will  subsequently  attack  the  southbound  convoy 0 

On  21  Jul. ,  submarine  chafer  UJ  "1423''  hit  an  obstacle  (wreck) 
below  the  surface  at  ebb  vide  in  the  Arsenal  harbor  at  Lorient 
and  capsized.,  There  were  no  casualties. 

Channel  Coast: 

Nothing  to  report 0 

III 0  North  Sea.  Northern  Waters.,  Norway: 

1.    North  Sea: 

Anti-mine  escort  service  was  hindered  to  seme  ex- 
tent by  the  weather  (mist),, 

Convoy  1153  Hoek-ELbe-  sailed  at  1300.   It  consists  of  8 
steamers  (10,828  BRT),  3  boats  of  30th  Minesweeper  Flotilla 
and  2  boats  of  20th  Minesweeper  Flotilla  on  transfer  to  the 
Baltic  Seae  Escort  consists  of  3  boats  of  13th  Patrol  Flo- 
tilla and  3  boats  of  lith  Patrol  Flotilla.   Minefiels  escort 
will  be  provided  by  5  boats  of  1st  Minesweeper  Flotilla  up  to 
Helder  and  by  27th  Minesweeper  Flotilla  from  Holder  onward. 

2 o    Norway.  Northern  Waters : 

Enemy  Situation : 

Radio  Intelligence  detected  19  planes  over  the 
North  Sea 'but  no  planes  operating  in  the  area  of  the  Iceland 
Squadrons,  Reconnaissance  by  the  5th  .'.ir  Force  produced  no 
tactical  results.  A  convoy  was  sighted  at  1355  on  a  southerly 
course  southeast  of  Scapa  close  under  the  coaste 

Own  Situation: 

At  noon  of  21  Jul.,  the  Russian  Battery  209  fired 
five  rounds  on  one  of  our  motor  boats.  The  Petsamo  Battery 
returned  fire  with  seven  rounds. 

Forty-four  enemy  planes  took  part  in  the  attacks  on  our  convoy 
near  Vardoe  on  20  Jul.;  15  of  them  were  shot  down  by  fighters 
and  shore  anti-aircraft* 

-294-  CONFIDENTIAL 


CONFIDENTIAL 
22  Jul.  1943 

Destroyer  Z  "28"  put  in  to  Trondheim  at  0745,  Destroyers  Z 
"29"  and  "35"  passed  Kristiansand  South,  going  north  it  2145. 
Thirty-eight  ships  were  escorted  to  the  north  and  25  ships  to 
the  south. 

IV.  Skagerrak,  Baltic  Sea  Entrances.  Baltic  Sea: 

le    Enemy  Situation: 

No  new  information  of  any  value  was  obtained  by 
our  air  reconnaissance  inKronstadt  Bay  and  the  eastern  part 
of  the  Gulf  of  Finland. 

The  Finns  report  an  engagement  between  3  Finnish  PT  boats  and 
2  Russian  guard  ships  north  of  Poninsaari  during  the  night  of 
21  Jul.,  and  a  thrust  by  6  Russian  PT  boats  up  to  north  of 
Sommeri  presumably  to  lay  mines. 

2.   .  Cwn  Situation: 

Twenty- two  vessels  and  4  minesweeping  planes 
were  out  on  check  sweeps  in  the  area  of  Commanding  admiral, 
Defenses  East,  Two  tankers  and  3  steamers  were  escorted. 
At  0500  on  20' Jul.,  the  German  fishing  smack  HORNSRIFF  hit  a 
mine  near  Skagen  and  sank. 

Admiral  Denmark  reports  an  incus sion  on  the  night  of  22  Jul. 
by  2  enemy  planes  up  to  Randers  and  Odensefjord,  presumably 
to  land  agents  and  lay  mines. 

The  loss  of  patrol  boat  Vp  "1014"  near  Laaland  on  20  Jul.  is 
ascribed  to  the  explosion  of  a  (presubably)  ELM/A  "blunt"  mine 
under  the  bow.  One  officer  and  twenty-four  men  are  missing. 

One  ELM/J  mine  was  cleared  near  Darsser  Ort.  Throe  tankers 
were  escorted  in  the  Baltic  Sea0 

No  special  reports  have  been  received  from  the  area  of  Com- 
mander, Minesweepers  East.  In  the  forenoon.,  our  formations 
near  Tytters  were  unsuccessfully  attacked  by  8  enemy  planes<- 

The  i\LRG0EN  Battery  is  being  removed  and:  is  reported  out  of 
action. 

V.  Submarine  Warfare: 


No  renorts  have  came  in  from  the  Atlantic* 


♦295-  CONFIDENTIAL 


CONFIDENTIAL 
22. Jul.  1943 

VI.   Aerial  Warfare: 


1.  British  Isles  and  Vicinity: 

During  the  day,  only  small  enemy  air  forces  en- 
tered the  west  area  attacking  locomotives  and  railway  stations 
in  the  Dutch  and-  Belgian  areae  An  enemy  reconnaissance  plane 
flew  into  the  Baltic  Sea  Entrances  as  far  as  40  miles  west 
of  Bornholm.  In  the  afternoon,  2  reconnaissance  planes  were 
over  the  Ruhr  area.  During  the  night  of  22  Jul.,  about  20 
planes  entered  the  area  Le  Havre  -  Gironde  mouth.  No  attacks 
were  reported,, 

2.  Mediterranean  Area; 

Attacks  by  47  'of   our  planes  on  naval  targets  be- 
tween Sicily  and  Malta  had  only  minor  results.  Three  steamers 
were  damaged.  The  enemy  attacked  airfields  and  villages  in 
Sardinia  during  the  day*  At  1030,  a  tanker  off  Ostia  was  set 
on  fire  by  strafing.  At  about  the  same  time,  FoggLa  and  Saler- 
no were  attacked  by  strong  forces  with  corresponding  fighter 
protection.  Late  in  the  evening,  the  aerodrome  at  Pratica  di 
Mare  was  attacked a   The  enemy  also  made  isolated  nuisance 
raids,  during  the  day  in  the  area  of  the  Greek  Islands, 

3.  East  Front: 

Ninety-eight  enemy  planes  were  shot  down  on  the 
Army  front  on  20  Jul.  and  56  on  21  Jul, 

At  Stavanger,  a  Ju  88  was  attacked  while  landing  by  gun  fire 
from  a  Beaufighter.  During  an  attack  by  five  FW  190  on  2  PT 
boats  south  of  Eina  Bay,  1  of  the  boats  was  destroyed  by  a 
direct  SC  500  hit. 

VI I o  Warfare  in  the  Mediterranean  and  Black  Sea: 

1.    Enemy  Landing  in  Sicily: 

Situation  on  Land: 

The  enemy  pressure  towards  the  north  continues,, 
according  to  an  Intelligence  report  of  20  Jul.,  the  enemy 
plans  to  make  a  combined  Navy/Air  Force  landing  in  northern 
Sicily  in  the  San  Stefano  di  Camstra  sector  immediately  after 
the  capture  of  Catania„  U.S.  and  Canadian  troops  are  standing 
by  for  this  operation  at  Bizerta,  with  transport  ships  and 
landing  vessels.  r,/ 


-296-  CONFIDENTIAL 


' 


I  - 


CONFIDENTIAL 
22  Jul.  1943 

Situation  at  Sea: 

On  21  Jul,  photographic  reconnaissance  of  Bizerte 
showed  a  large  increase  in  the  number  of  vessels  present  which 
comprised  1  transport,  44  freighters  (totalling  about  200,000 
BRT),  1  tanker,  3  cruisers,  4  destroyers,  94  landing  vessels, 
3  landing  stages  and  other  small  vessels.  According  to  evalua- 
tion of  photographs  of  21  Jul,,  more  enemy  forces  including 
LST  and  landing  vessels  have  arrived  on  the  south  coast  of  * 
Sicily,  For  details  of  ships  at  Empedoclc,  Licata  and  Gela, 
see  teletype  0610,  'The  harbors  in  eastern  Sicily  were  also 
very  full  on' 21  Jul,  In  addition  to  landing  boats,  2  cruisers, 
3  destroyers,  and  28   other  war  vessels  were  in  .oigusta  in  the 
afternoon.  Seven  freighters  were  on  the  way  out.  No  further 
reports  have  been  received  on  a  formation.. of  several  uniden- 
tified units  reported  by  the  Italians  at  2230  on  21  Jul.  to 
be  south  of  Cape  Spartivento  on  course  45°«  About  2300  on  21 
Jul.,  large  concentrations  of  shipping  were -reported  in  the 
area  of  Cape  Passero  as  well  as  near  Empedocle  and  south  of 
Granitola, 

It  is  impossible  to  gain  a  clear  picture  of  the  enemy's  cur- 
rent intentions  from  the  number  of  ships  observed  in  the  ports 
and  their  movements.   It  can  only  be  assumed  that  they  main- 
tain the  supply  service  from  Bizerta  and  Malta, 

The  transfer  of  the  torpedoes  to  Taranto  has  unfortunately 
been  so  delayed  by  transportation  difficulties  that  1st  PT 
Boat  Force  was  again  unable  to  operate  on  21  Jul, 

At  1714,  submarine  U  "81"  torpedoed  a  southbound  steamer  of 
5,000  BRT  in  CN  3282  (15  miles  southeast  of  Syracuse).  The 
steamer  did  not  .sink  in  spite  of  a  finishing  shot.   The  boat 
has  used  all  her  torpedoes  arid  has  turned  back  to  Pola, 

2„    Enemy  Situation  in  Other -:Barts  of  the  Mediterranean: 

During  the  day,  a  DIDO-class  cruiser  with  1  de- 
stroyer entered  Gibraltar  from  the  Atlantic  and  another  DIDO- 
class  cruiser,  which  was  immediately  docked,  and  a  convoy  of 
7  freighters  with  3  escort'  vessels  arrived  from  the  Mediter- 
rean.  At  1530,  a  convoy  of  3  tankers  and  6  freighters  with 
1  destroyer  and  3  escort  vessels  left  for  the  Mediterranean* 
At  0840,  an  eastbound  convoy  of  6  freighters  with  3  destroyers 
passed  Tangiers  coming  from  the  Atlantic, 

From  the  Western  Mediterranean,  only  one  report  on  a  westbound 
convey  of  3  steamers  Near  Cape  Ferrat,  has  been  received,,  At 


-297-  CONFIDENTLY 


CONFIDENTIAL 
22  Jul.  1943 

0145  on  21  Jul.,  a  convey  of  1  (probable)  cruiser,  2  destroy- 
ers, 1  escort  and  transport  was  sailing  west  12  miles  north 
of  Serrat,  This  formation  was  not  observed  again  on  22  Jul. 
At  1830  there  were  6  unidentified  vessels  northwest  of  Bizerta. 

In  the  Eastern  Mediterranean,  8  steamers  with  2  destroyers 
and  1  escort  vessel  were  sighted  and  reported  at  1800  on  21 
Jul.,  40  miles  east-northeast  of  Derna  on  course  285°.  These 
were  presumably  a  part- of  the  convoy,  observed  at  1800  on  20 
Jul.  near  Sidi  Bar rani,  which  had  not  put  in  to  Tobruk* 

3«    Own  Situation '-in  Other  Parts  of  the  Mediterranean 
Sea  Transport  Situation; 

No  final  reports  have  come  in  on  the  damage  caused 
by  the  air  raids  on  Naples  and  Salerno, 

The  following  ships  were  employed  on  convoy  escort: 

SG  "11,  motor  minesweepers  R  "61",  "12",  "13",  "16",  submarine 
chaser  UJ  "2207",  4  Italian  torpedo  boats,  1  destroyer.  The 
steamer  CHAMP^GNER  was  unsuccessfully  bombed  on  hew  way  back 
from  Bastia  to  Leghorn*  Six  steamers  and  1  tanker  were  engaged 
in  the  Sardinia  traffic*   The  enemy  made  continuous  but  un- 
successful air  attacks  on  a  convoy  of  2  steamers,  1  tanker  and 
4  motor  minesweepers  west  of  Elba.   The  ORIANI  has  been  towed 
to  Porto  Ferraio.   In  the  Sicily  supply  traffic,-  1  motor  ship 
with  2  torpedo  boats  arrived  at  Milazzo  from  Naples. 

No  reports  have  been  received  from  R0M0L0  and  REMO  en  route 
from  Messina  to  Naples* 

Up  to  22  Jul,  inclusive,  a  total  of  26  neutral  ships  (94,803 
BRT)  and  127  French  ships  (453, H6  BRT)  have  been  transferred 
from  France  to  Italy.   No  ship  of  this  kind  are  out  at  present, 
at  sea. 

Group  West  has  reported  the  plan  for  minelaying  tasks  T  la  and 
T  lb  to  be  carried  out  by  the  POMMERN  and  BRANDEEBURG  on  23 
Jul.   The  operation  started  from  Toulon  at  20006  In  ragard  to 
the  small-vessel  situation,  German  Naval  Command,  Italy  re- 
ports: 

1.    German  Vessels: 

ca.    In  operational  status  in  the  Sicilian 
area:   33  naval  landing  craft,  9  Siebel-ferries,  3  combat 
ferries,  2  naval  artillery  lighters,  5  patrol  boats,  11  land- 
ing boats,  71  infantry  landing  craft,  26  tank  barges,  2  "See- 
loewe"  barges. 

b.    In  operational  status  in  the  area 

.  ?98-  CONFIDENT  J...  L 


CONFIDENTIAL 
22  Jul.  1943 

Corsica-Sardinia:  5  landing  craft,  4  Siebel -ferries,  1  patrol  • 
boat,  5  landing  craft,  7  infantry  landing  craft,  9  tank  barges, 
1  tank  lighter,  11  tank  freight  barges „ 

Co    Estimated  increase  by  completion  of'  repairs: 
by  31  Jul„ :  10  naval  landing  craft,  3  Siebcl-f erries,  3  tank 
barges;  by  15  Aug,:  3  naval  landing  craft,  1  combat  ferry,  4 
infantry  boats,  1  tank  lighterc 

d*    Estimated  increase  by  new  construction:  by 
31  Jul. :  1  naval  landing  craft,  5  infantry  boats,  15  tank  ' 
bargesj  15  ^ug.:  13  naval  landing  craft,  5  infantry  boats, 
19  tank  barges,  9  freight  barges,  11  "Seeloewe"  barges  and  13 
auxiliary  sailing  vessels » 

e,    Italian  vessels:  20  naval  landing  craft, 
are  operating  in  the  Sicilian  area,  10  in  the  area  Sardinia/ 
Corsica,  18  are  out  of  action,  2  are  under  construction,  date 
of  completion  unknown, 

4.    xlrea  Naval  Group  South:  , 

Aegean: 

The  DRACHE  has  transferred  from  Piraeus  to 
Salonika o  The  troop  transport  steamer  RE  ALLS33ANDR0  under 
escort  of  2  torpedo  boats  put  in  to  Salonika  from  Mudros  and 
returned  to"  Mudros  in  the  afternoon,  in  order  to  take  troops 
to  Rhodos-  oh  23  Jul,  Submarine  chaser  UJ ' "2104"  was  sent  from 
Mudros  to  Piraeus  to  reinforce  the  escort. 

Torpedo  boat  TA  "20"  (foreign  build)  arrived  from  Bari  at 
Patras  with  the  steamer  INGEBORG  and  proceeded  alone  to 
Piraeus, 

On  21  Jul.,  enemy  air  attacks  were  made  on  Paros  island  in 
western  Greece,, 

Black  Sea: 

Enemy  Situation: 

In  the  evening  of  21  Jul.,  a  submarine  was  detected 
by  location  30  miles  west  of  Poti«  Nine  planes  unsuccessfully 
attacked  our  Crimean  convoy  near  Cape  Meganon  in  the  afternoon 
of  21  Jul, 

At  midnight  2-3  motor  gun  boats  made  an  artillery  attack 

-299-  CONFIDENTIAL 


CONFIDENTIAL 
22  Jul.  1943 

on  our  patrol  boats  off  Temrjuk.  A  short  exchange  of  fire 
had  no  result  on  either  side* 

Own  Situation: 

The  repeat  bombardment  of  the  Mius  front  near 
Varenovka  by  naval  artillery  lighters,  1  and  2  and  motor  mine- 
sweeper R  "156"  was  carried  out  according  to  plan,  and  large 
fires  were  observedc  Defensive  fire  by  heavy  land  batteries 
scored  no  hits. 

On  the  night  of  22  Jul.,  3  boats  of  11th  PT  Boat  Flotilla  were 
in  operation  in  the  patrol  area  west  of  Ilovorossisk, 

The  tanker  0S3AG,  protected  by  4  motor  fishing  vessels,  is 
en  route  from  the  Bosphorus  to  Burgas o 

Minesweeping  planes  successfully  cleared  t\io   mines  in  the  Dan- 
ube. 

VIII.  Situation  East  Asia: 

According  to  Allied  reports,  a  Japanese  supply  force 
of  3  light  cruisers,  6  destroyers  and  2  transports  in  Vella 
Bay  was  attacked  by  bombers  throughout  the  night.  Allegedly, 
1  cruiser  and  2 'destroyers  were  sunk  and  1  cruiser  and  1  de- 
stroyer damaged. 

U.  S.  Navy  Department  also  announced  that  2  U.S.  ships  bomb- 
arded Japanese  installations  on  Kiska  on  20  Jul, 

Reuter  gives  Japanese  warship  los  ;es  from  1-21  Jul.  as  fol- 
lows: 'Sunk:  3  cruisers,  13  destroyers,  1  submarine  chaser,  1 
tanker,  1  freighter:  Probably  sunk:  5  destroj^ers :  Damaged:  4 
freighters.  According  to  Domei"*,  planes  of  the  Japanese  Naval 
Air  Force  attacked  Colombo  and  Trincomali  during  the  night  of 
17  Jul. 

A  German  agency  report  from  Tokyo  states  that  the  Japanese 
have  refloated  the  50,000  ton  floating  dock  at  the  naval 
harbor  of  Seletar,  which  had  been  sunk  by  the  British  in  1941, 


-3OO-  CONFIDENTIAL 


CONFIDENTIAL 
23  Jul.  1943 

Items  of  Political  Importance: 

Nothing  to  report. 

The  conference  on  the  situation  with  the  Chief,  Naval  Staff 
was  not  held.   Chief,  Naval  Staff  is  attending  a  conference 
on  warship  types  to  which  he  had  been  invited  by  Reichminis- 
ter  Speer„ 

• 

Special  Items: 

I.    Armed  Forces  High  Command,  Intelligence  Division  has 
forwarded  the  following  report  of  12  Jul6  from  an  agent  who 
has  so  far  proved  very  reliable: 

"On  the  basis  of  statements  made  by  the  British  Under-Sec- 
retary of  State  Law,  several  conversations  with  Air  Vice 
Marshal  Harrison,  and  many  observations  of  my  own,  the 
following  opinion  on  Mr.  Stimsons1  visit  to  England  is 
submitted: 

The  conferences  with  Stimson  have  nothing  to  do  with  current 
operations  in  Sicily.  Everything  goes  to  indicate  that  the 
two  main  subjects  of  discussion  are; 

1.  An  Allied  operation  in  Norway,  to  be  executed 
mainly  by  Americans. 

2.  Talks  with  the  relative  British  Army  and  Air 
Force  authorities  on  the  use  of  the  American  Air  Force,  in- 
cluding, in  particular,  the  establishment  of  an  American 
Invasion  Air  Force „ 

In  regard  to  point  1.,  it  is  noted  that  troop  movements  to 
the  north  continue.  One  complete  Army  Corps  has  been  trans- 
ferred to  northern  England  and  Scotland  and  a  second  one  is 
on  the  way.  Furthermore,  Harrison  has  reported  on  the  trans- 
fer of  British  bomber  formations  to  northern  England  and  the 
rs-equipment  of  Scottish  airfields  with  formations  of  Bomber 
Command.   The  decisive  point  however  appears  to  be  that  both 
the  U.S.  and  the  British  formations  in  Iceland  have  been 
strongly  reinforced.   Exact  figures  on  numbers  of  planes  and 
personnel  of  the  Royal  Air  Force  and  the  U.S.  squadrons  will 
be  furnished  later.  As  to  the  direction  of  a  possible  Allied 
attack,  it  is  considered  probable  that  the  objective  will  be 
central  Norway  (Trondheim)  since  as  may  be  concluded  from 
Law's  statements,  this  area  would  be  the  most  advantageous 
also  from  the  political  point  of  view. 


-301-  CONFIDENTIAL 


CONFIDENTIAL 
23  Jul.  1943 

In  regard  to  point  2.,  the  formation  of  a  U.S.  Tactical  Air 
Force  in  Great  Britain  has  already  been  reported.  Thus, 
parallel  British  and  American  air  forces  are  now  being  set 
up  for  use  in  a  large-scale  invasion," 

II,  In  accordance  with  the  directives  of  llaval  Staff,  Op- 
erations Division,  Naval  Staff,  Quartermaster  Division  has 
arranged  the  distribution  of  the  17  coastal  motor  boats 
(torpedo-carriers)  in  the  Aegean  and  in  the  Black  Sea*   Two 
flotillas  of  eight  boats  each  will  be  set  up.  The  seven- 
teenth boat  will  remain,  for  the  time  being,  with  the  PT 
Boat  Training  Flotilla  as  training  boat,  ' For  copy  of  order 
as  per  l/Skl  20721/43  Gkdos  see  War  Diary,  Part  C,  Vol,  d. 

III,  A  directive  issued  by  Chief  of  Armed  Forces,  Hign  Com- 
mand on  23  Jun.  1943  supplementing  order  of  12  Febt  1943  con- 
cerning the  exercise  of  the  executive  authority  in  the  op- 
erational area  is  attached  to  War  Diary  Part  B,  Vol.  V.  as 
per  l/Skl  21997/43  gehe 

IV,  Naval  Staff,  Quartermaster  Division  has  reported  to 
Armed  Forces  High  Command,  Operations  Staff  op  on  the  status 
of  readiness  of  the  preparations  for  ALARICH  and  K0N3TANTIN. 
For  copy  as  per  l/Skl  20662/43  Gkdos  see  War  Diary  Part  C, 
Vol.  X. 

Situation  on  23  Jul.  1943 

I.  Vfeir  in  Foreign  Waters: 

1,  Enemy  Situation: 

No  particular  reports  have  been  received, 

2.  Own  Situation: 

Naval  Attache,  Tokyo  reports  that,  in  reply  to 
a  call  from  the  ERITREA,  AQUILA  II  has  announced  that  she 
will  reach  the  rendezvous  point  on  27  Jul, 

The  assumed  loss  of  this  boat  which 'had  not  reported 
since  17  Jun.,  is  thus,  fortunately,  proved  mistaken. 

In  reply  to  a  query  from  Naval  Attache,  Tokyo  as  to  what  was 
to  be  done  with  the  torpedoes  from  MARCO  POLO,  Naval  Staff 
has  advised,  by  telegram  013 6,  that  they  are  for  the  Japanese 
Navy,  The  place  of  delivery  was  not  specified  by  Naval  Staff 

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23  Jul.  1943 

and  is  to  be  fixed  with  the  Japanese, 

Naval  Staff  has  also  informed  Naval  Attache,  Tokyo  on  the 
status  of  the  negotiations  in  regard  to  the  cession  of  Jap- 
anese submarines  for  the  rubber  transport.   For  copy  of 
telegram' l/Skl  I  opa  2074/43  Gkdos.  Chefs,  see  War  Diary 
Part  C,  Vol.  IX, 

Information  on  the  enemy  situation  has  been  forwarded  to  all 
our  ships  in  foreign  waters  by  radiograms  1347,  1934  and 
2048. 

II.   Situation  West  Area: 


1.  Enemy  Situation: 

Twenty-three  planes  were  detected  in  the  area  of 
19th  Group. 

One  British  vessel  each  was  detected  at:  0938  in  BF  4410;  1256 
in  BE  6652;  1344  in  CF  2850;  2106  in  BE  66. 

Radio  Intelligence  also  detected  an  escort  plane  of  the  con- 
voy MANGLE  at  2349  in  BE  5354  and  at  0020  on  24  Jul.  in  BE 
3874, 

Our  air  reconnaissance  reported:  at  0825,  in  BE  6394,  1  air- 
craft carrier,  5  destroyers,  course  210°;  at  0950  in  BE  6631, 
1  aircraft  carrier,  5  destroyers,  course  200°;  at  1005,  in 
BE  6399,  1' hospital  ship,  course  360°,  medium  speed;  at  1441, 
in  BE  6632;  2  destroyers,  course  300°,  high  speed;  at  1515, 
in  BE  6645,  1  cruiser,  1  destroyer,  northerly  course^  medium 
speed;  at  1603,  in  BE  6672,  2  destroyers,  course  90°,  high 
speed,  escorted  by  3  fighters. 

2.  Own  Situation: 


Atlantic  Coast: 


On  22  Jul.,  two  ELM/J  mines  were  cleared  off  the 
Gironde,  one  off  Brest  and  one  off  Quiberon.   The  French  deep- 
sea  fishing  sailing  vessel  LS  "2311"  with  a  crew  of  seven  men 
is  overdue  since  20  Jul.  It  has  probably  either  been  captured 
or  fled  to  England*  Minesweeper  M  "152"  sank  near  buoy  "3" 
in  the  Gironde  at  1513,  after  heavily  striking  a  mine.   The 
route  had  recently  been  swept  particularly  carefully.   It  is 
thought  that  the  mine  was  an  ELM/J  with  very  high  clicker-  or 
delay-setting. 

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CONFIDENTIAL 
23  Jul.  1943  " 

The  convoy  of  the  GREIF  and  the  FALKE,  together  with  sub- 
marines U  "91"  and  U  "218",  returned  to  Brest  at  1400. 

No  reports  have  been  received  from  the  submarine  convoy  es- 
corted by  8th  Destroyer  Flotilla.   Group  West  therefore  as- 
sumes that  they  are  proceeding  according  to  plan  in  spite 
of  reported  sighting  of  the  enemy  and  the  locations  made. 

Channel  Coast: 

Nothing  to  report, 

III.  North  Sea,  Norway,  Northern  Waters: 

North  Sea: 

1.  Enemy  Situation: 

According  to  air  reconnaissance  at  about  2000 
there  were  15-20  ships  on  a  northerly  course,  east-northeast 
of  Cromer  and  5  ships  —  course  unspecified  -  20  miles  east 
of  Great  Yarmouth. 

2.  Own  Situation: 

On  22  Jul.,  ten  ELM/J -mines  were  cleared  north 
of  Ameland  and  northwest  of  Tershelling  and  Borkum.  The 
fishing  vessel  KB  "158"  sank  between  Ymuiden  and  Den  Helder 
following  an  underwater  explosion, 

9th  Motor  Minesweeper  Flotilla  was  attached "to  convoy  "1155" 
as  far  as  Ymuiden,  as  additional  protection. 

An  attack  by  12  enemy  PT  boats  on  convoy 
1155  15  miles  southwest  of  Ymuiden  between  0054  and  0307, 
was  repulsed  by  9th  Motor  Minesweeper,  Flotilla  cover- 
ing force  and  1st  Minesweeper  Flotilla  mine-field  escort 
after  a  close  combat  in  which  hand  grenades  x^ere  also  used. 
Several  PT  boats  were  set  oh  fire,  three  of  them  probably 
destroyed.  Motor  minesweepers  R  "107",  "103",  and  "87"  were 
heavily  damaged.   Motor  minesweeper  "107"  "was  towed  in.   The 
other  boats  and  the  minesweeper  M  "37"  suffered  minor  damage. 
Station  ROM  participated  in  the  engagement.  There  was  a  short 
exchange  of  gunfire  without  damage  to  our  motor  minesweepers. 
The  PT  boats  put  up  smoke  screens  and  sheered  off.   From  0205 
to  0240  in  AN  P 531,  6  PT  boats  attacked  34th  Idnesweeper  Flo- 
tilla.  Hits  were  observed  on  all  the  PT  boats.   One  PT  boat 
was  set  on  fire  and  probably  sank.  The  enemy  sheered  off 


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23  Jul.  1943 

after  setting  up  smoke- screens.   At  0325,  station  ROM  en- 
gaged 2  PT  boats.   Hits  were  observed.  Casualties:  9th 
Motor  Minesweeper  Flotilla,  2  killed,  16  seriously  and  5 
slightly  wounded;  1st  Minesweeper  Flotilla,  1  seriously 
and  4  slightly  wounded;  34th  Minesweeper  Flotilla  and  11th 
PT  Boat  Flotilla,  2  slightly  wounded  each. 

According  to  Radio  Intelligence,  a  British  warship  reported 
to  Yarmouth  at  0814:  "I  have  MTB  "222"  in  tow," 

Convoy  "1155"  anchored  undamaged  in  the  roads  off  Helder  and 
resumed  passage  to  the  east  at  2100. 

The  PT  Boats  S  "79",  "81",  "I36"  moved  from  Wesermuende  to 
Ymuiden. 

Norway,  Northern  Waters: 

1.    Enemy  Situation: 

Radio  Intelligence  picked  up  normal  air  activity 
by  15  planes  over  the  North  Sea  and  one  plane  operating  in 
the  area  of  the  Iceland  Squadrons.   It  was  also  established 
that  our  convoys  near  Berlevaag,  in  Basfjord  and  near  Nord 
Kyn  were  detected  and  reported  by  Russian  air  reconnaissance. 

Photographic  reconnaissance  of  Scapa  on  22  Jul.  revealed  1  * 
battleship  of  the  KING  GEORGE- V-c lass,  1  of  the  RENOWN-class, 
1  heavy  cruiser,  5  destroyers,  2  (apparentlj'")  corvettes,  1 
work-shop  ship,  1  net-layer,  1  floating  dock,  6  freighters 
and  the  ex-German  battle  cruiser  DERFFLINGER.  Cover  was  not 
complete.  In  the  Holmsound,  Watersund,  and  Hundasund,  dam 
barrages  seem  to  have  been  constructed  in  addition  to  the 
ship  barrages. 

At  1150,  on  23  Jul.,  air  reconnaissance  sighted  a  merchant- 
man of  about  1000  BRT,  150  miles  north  of  Jan  Mayen  on  course 
70°.  This  was  possibly  a  supply  ship  or  a  weather  ship, 

2„    Own  Situation: 

At  2200,  on  22  Jul.,  the  mineship  formation 
KAISER-OS TMARK  was  unsuccessfully  attacked  by  torpedo  planes 
near  Tanahorn.   Two  of  the  attacking  planes  x^erc  shot  down 
by  fighters.  On  23  Jul.,  the  formation  laid  barrage "NW  "32" 
part  1  (flank-barrage  near  Vardoe)  according  to  plan.   The 
Kongsfjord  raid  has  brought  to  light  further  material.   The 
search  is  being  made  by  2  naval  landing  craft,  and  2  harbor 


-3C5-  CONFIDENTIAL 


cc::~::eattial 

23  Jul.-  1943 

protection  boats.  Air  activity  on  22  Jul.  on  the  north  and 
west  coasts  was  slight.  Our  fighters  were  in  operation  but 
made  no  contact  with  the  enemy* 

Thirty-one  ships  were  escorted  to  the  north  and  30  ships  to 
the  south.  Ten  steamers  were  held  up  at  Kristiansand  South 
because  of  lack  of  escort.  For  the  same  reason,  shipping  is 
considerable  delayed  in  the  area  of  Admiral,  Northern  Coast. 

Naval  Staff,  Submarine  Division  states  that  additional  re- 
connaissance can  occasionally  be  carried  out  north  and  east 
of  Iceland  by  Atlantic  boats  which,  according  to  ice  condi- 
tions, sometimes  go  north  of  Iceland.  He  will  include  cor- 
responding instructions  in  the  operational  orders  of  sub- 
marines going  out  on  that  route, 

IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

1.  Enemy  Situation: 

Eight  motor  minesweepers,  12  guard  boats,  1  mine- 
sweeper, 3  tugs  and  4  barges  entered  Kronstadt  about  0400 
coming  from  the  west.   This  was  apparently  the  convoy  of  22 
vessels  already  reported  by  the  Finns, 

2.  Own  Situation: 

In  the  area  of  Commanding  Admiral,  Defenses  East, 
"10  vessels  and  4  minesweeping  planes  were  engaged  on  channel 
sweeping.  One  ground,  mine  was  cleared  11  miles  west  of  ?Iullen. 

Transport  and  convoy  traffic  was  carried  out  according  to 
plan  and  without  incident  throughout  the  Baltic  Sea. 

At  0320,  mine  clearance  ship  "12"  anchored  north  of  Pissen 
was  attacked,  in  bad  visibility,  by  a  four  cngined  plane  with 
one  torpedo.   In  spite  of •  the  ship's  draught  (5.6  meters)  and 
a  water-depth  of  9  meters,  the  torpedo  passed  under  the  ship. 
She  was  moved  to  V/indau. 

V.  Submarine  Warfare: 

Cn  16  Jul.,    submarine  U  "43",    In  BF  4495,    successfully 
warded  off  a  Sunderland  for  30  minutes  and  on  19  Jul.   in  BE 
6455,    she  shot  down  a  Liberator. 

On  22  Jul.,    in  EU  9656,   U  "571"  was  damaged  and  forced  to 
turn  back  by  a  low-flying  Wellington.      Hits  were  scored  on 


_306-  CONFIDENTIAL 


CONFIDENTIAL 
23  Jul.  1943 

the  enemy  plane.  Further  enemy  air  attacks  were  reported  by 
submarines  U.  "600"  and  "664".  U  "527"  has  so  far  failed  to 
reply  to  a  request  for  a  position  report  after  a  warning  for 
a  flying  boat.  No  reports  on  successes  in  the  Atlantic  have 
been  received, 

VI.  Aerial  Warfare : 

British  Isles  and  Vicinity: 

3rd  Air  Force  had  70  planes  in  operation  in  the  West 
area  and  19  planes  in  the  Mediterranean. 

Enemy  air  activities  during  the  day  were  limited  in  north 
and  west  France  but  stronger  in  Belgium  and  the  Netherlands0 
Attacks  were  again  made  on  traffic  and  supply  installations a 
For  details,  see  Daily  Situation.  No  other  reports  of  im- 
portance have  been  received, 

Mediterranean  Theatre: 

The  enemy  air  forces  were  active,  particularly  against 
airfields  in  southern  Italy  and  Crete ?  Ten  of  our  planes 
were  destroyed  on  the  airfield  at  Aquino e  Anti-aircraft  guns 
on  Crete  shot  down  15  enemy  planes. 

Two  more  ships  were  reported  damaged  by  our  own  bombing  at- 
tacks on  the  night  of  21  Jul,  During  the  night  of  22  Jul., 
47  bombers  were  sent  out  against  shipping  targets  at  Augusta. 
A  steamer  of  2,000  BRT  was  sunk  and  6  steamers  totalling 
14,000  BRT  were  damaged. 

Eastern  Front: 

On  22  Jul.,  105  enemy  planes  were  shot  down  on  the  Army 
front. "  No  special  reports  have  come  in  from  4th  and  5th  Air 
Forces, 

VII.  War  in  the  Mediterranean  and  Black  Sea: 
1*    Enemy  Landing  in  Sicily: 

Situation  on  Land: 

In  western  Sicily,  U.S.  forces  have  advanced 
close  to  the  east  and  southeast  of  Palermo.  According  to 
radio  intelligence,  U.S.  troops  had  already  entered  Palermo 


-3O7-  CONFIDENTIAL 


CONFIDENTIAL 
23  Jul.  1943 

by  about  1000  on  22  Jul.   Termini  has  been  occupied  by  the 
enemy.   In  east  Sicily,  the  main  thrust  of  the  enemy  offen- 
sive is  still  against  the  sector  of  the  15th  Armored  Division 
whereas  the  enemy  has  withdrawn  slightly  from  our  main  defense 
line  in  the  sector  of  the  "Hermann  Goering"  Tank  Division. 
14th  Tank  Corps  plans  to  withdraw  the  main  defense  to  the 
line  Spailladora  Hills  -  north  of  Leonforte  -  Agira.  In 
order  to  open  a  passage  for  the  forces  withdrawing  from 
Palermo,  it  is  planned  to  make  a  thrust  from  Cefalu  towards 
Termini,  There  is  a  total  of  53  tanks  operational,  includ- 
ing three  "Tigers"  in  the  two  tank  divisions,, 

Situation  at  Sea: 

One-third  of  the  enemy's  landing  craft  transport 
space  is  still  engaged  in  the  Sicilian  operation.  The  loca- 
tion of  more  than  half  of  the  landing  boats  is  unknown.   The 
freighter  and  transport  space  of  about  750,000  BRT  engaged  in 
the  Sicilian  operation,  remains  practically  unchanged,,  Losses 
by  sinking  have  been  made  up  by  replacements. 

According  to  air  reconnaissance,  there  were  5  ships  on  a 
westerly  course  45  miles  east-southeast  of  Cape  Passero  at 
0315,  and  9  more  ships'  on  a  northwesterly  course  in  the  same 
area  at  0340„  At  1240,  a  convoy  of  25  big  merchantmen  was 
in  the  roads  at  La  Valet ta.  One  aircraft  carrier  and  1 
battleship  were  leaving  the  harbor.  At  the  same  time,  there 
were  6  medium  sized  warships  southeast  of  the  island  on  course 
330°.   It  is  not  clear  whether  they  were  joining  an  outgoing 
convoy 'or  whether  they  were  coming  in  from  the  Eastern  Mediter- 
ranean, Second  evaluation  of  the  photographic  reconnaissance 
of  21  Jul.  revealed  the  following  ships  at  La  Valetta:  RODNEY, 
NELSON,  2  ILLUSTRIOUS-class  ships,  5  cruisers  including  one 
in  dock,  1  MANXMAN-class  ship,  19  destroyers,  including  one 
in  dock,  7  submarines,  2  escort  boats,  2  gunboats,  including 
one  in  dock,  14  motor  gunboats,  20  PT  boats,  13  LST,  42  land-  - 
ing  vessels,  1  special- ship,  1  LSI,.  4 ^transports,  7  freighters, 
2  tankers,  and  6  other  merchantmen  as  well  as  other  small 
vessels. 

The  number  of  motor  gunboats  and  of  other  PT  boats  is  high. 

According  to  air  reconnaissance  on  23  Jul,,  there  was  a  battle- 
ship 18  miles  east  of  Bizerta,  at  1250,  On  this  day,  the 
enemy  invasion  traffic  was  heaviest  at  Syracuse,  Augusta  and 
Licata.   In  the  port  of  Palermo,  large  fires  were  observed 
apparently  caused  by  our  own  demolition  work.  In  a  heavy  air 
attack  on  Salerno,  a  naval  materiel  depot  and  the  autovehicle 
servicing  station  were  buried;  there  were  no  casualties „ 

-308-  CONFIDENTIAL 


CONFIDENTIAL 
23  Jul.  1943 

Submarine  D  "407"  reoorts  a  hit,  probably  on  a  light  cruiser, 
in.CN  3254. 

2 •    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

A  convoy  of  4  transports,  5  tankers,  and  9  freight- 
ers with  8-10  U.S..  destroyers  passed  Ceuta  in  the  forenoon 
towards  the  Atlantic,.  Seven  more  freighters  put  into  Gibral- 
tar from  the  Mediterranean.  Among  the  ships  that  arrived  in 
the  ©veiling  of  22  Julc  one  was  a  landing  craft  transport  ship 
of  the  DEt!DALE-type. 

In  the  afternoon,  a  convoy  of  9  freighters  and  1  tanker  with 
5  escort  vessels  entered  the  Mediterranean,  In  the  evening 
another  convoy  of  15  loaded  and  1  empty  freighters  with  7 
escort  vessels  left  the  harbor  for  the  Atlantic.  A  destroyer 
without  guns  was  being  towed  by  a  deep  sea  tug. 

No  reports  on  shipping  have  been  received  from  the  Western 
Medit  erranean. 

At  1852,  there  were  14  ships  on  an  easterly  course  near  Cape 
Bougaroni.  Photographs  showed  14,900  BRT  of  freighter  space  ' 
and  1, 500  BRT  tanker  space  as  well  as  1  PT  boat,  1  minesweeper, 
3  auxiliary  warships,  1  LST  and  42  landing  boats  at  Tunis 
:  and  the  La  Goulette  roads 0 

Submarines  were  reported  southeast  of  Port  Vendres,  west  of 
Cape  Vaticano  and  west  of  Civitavecchia, 

In  the  Eastern' Mediterranean  at  1710  there  was  a  tanker  north- 
east of  Tobruk,  making  for  the  harbor.  No  other  sighting  re- 
ports were  received. 

3 .    Own  Situation  in  Other  Parts  of  the  Mediterranean 
Sea  Transport  Situation: 

•  The  Italian  minelayer  DURIZZO  was  sunk  at  0900 
on  22  Jul,,  by  an  enemy  submarine  8  miles  east-northeast  of 
Porto  Vecchio* 

At  1037,  an  unsuccessful  enemy  air  attack  was  made  on  the 
convoy  of  the  steamers  C0LLEVTLLE  and  ADERN0  accompanied  by 
(foreign  built)  torpedo  boat  TA  "11",  submarine  chaser  UJ 
"2203",  "3208"and  one  Italian  torpedo  boat,  en  route  from 
Naples  to  Civitavecchia,  Two  of  the  attacking  planes  were 
shot  down.  At  1954  the  steamer  ADERN0  in  this  convoy  was 
sunk  by  an  enemy  submarine  3  miles  west  of  Civitavecchia, 


-309-  CONFIDENTIAL 


I 


CONFIDENTIAL 
23  Jul.  1943 

About  1000,  2  naval  landing  craft,  run  aground  at  St.  Stefano 
during  an  enemy   air  attack.   Three  planes  were  shot  down. 
Two  more  planes  were  shot  down  by  2  Siebel  ferries  and  a  sub- 
marine near  Ionia, 

The  fast  escort  boats  SG  "10"  and  "11",  the  (foreign-built) 
torpedo  boat  TA  "11",  6  motor  minesweepers,  3  submarine  chasers, 
1  Italian  torpedo  boat  and  1  corvette  were  on  escort  duty.  Al- 
together 2  tankers,  4  steamers  and  1  motor  ship  were  escorted 
in  the  island  traffic.  While  sailing  from  Bastia  to  Elba, 
the  steamer  MONT  AGEL  was  sunk  by  an  enemy  aerial  torpedo 0 

It  is  stated  by  the  Italian  Admiralty,  through  Vice  Admiral 
Bertoldi,  that  the  submarines  R0M0L0  and  REM)  have  probably 
been  lost  in  the  Ionian  Sea  during  their  transfer. 

4.    Area  Naval  Group  South: 

Aegean: 

Enemy  Situation: 

According  to  an  Intelligence  report  from  Cairo, 
an  important  secret  session  was  held  at  Headquarters  on  20  * 
Jul.  at  which  the  King  of  Greece,  Lord  Moyne,  General  Wilson, 
Air  Marshal  Douglas,  General  Brooke  and  Admiral  Cunningham 
were  present.  It  was  not  possible  to  establish  whether  Gen- 
eral Eisenhower  was  in  Cairo  as  had  been  alleged. 

Own  Situation: 

Torpedo  boat  TA  "10"  has  arrived  at  Piraeus „  lj 

Transport  and  escort  traffic  was  carried  out  according  to 
plan  and  without  incident.  At  1050,  an  enemy  submarine  was^ 
reported  by  a  plane  30  miles  south  of  Salonika.  The  harbor 
and  sea  plane  base  at  Proves a  were  attacked  by  enemy  planes 
on  22  Jul.  One  Italian  plane  was  damaged.   On  23'  Jul.  Herak- 
lion  was  attacked.   Naval  Shore  Commander,  Attica,  Captain 
Lcithaeuser,  failed  to  return  front  a  reconnaissance  flight 
over  Corfu. 

Group  South  ordered  Naval  Shore  Commander,  Salonika  to  assume 
the  functions  of  Naval  Shore  Commander  Attica.  The  duties  of 
Naval  Shore  Commander,  Salonika  will  be  taken  over  as  addition  - 
al  duty  by  Naval  Liaison  Officer  with  Army  Group  E. 

Black  Sea: 


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CONFIDENTIAL 
23  Jul.  1943 

11th  PT  Boat  Flotilla  made  no  enemy  contact  dur- 
ing operations  off  Cape  Utrish  in  the  night  of  22  Jul.  Dur- 
ing bhe  night  of  23  Jul..,  6  boats  of  1st  PT  Boat  Flotilla 
were  assigned  to  carry  ou4>' an  operation,  in' cooperation  with 
the  Army  and  the  Air  Force,  against  the  landing  place  at 
Myshakov,   The  attack "was  made  at  2245j  a^  planned*  No  further 
details  are  yet  known* 

The  Tangam*og-Mar.iupo3  convoy  was  attacked  by  a  plane  during 
the  night  of  22  Jul,  Three  men  were  wounded  on  (foreign 
built)  motor  caiie'swreeper  HA  ''^6"^  It  is  further  reported  as 
of  21  Jul*,  that  a  darting  flame  was  seen  to  break  out  on  a 
combined  operations  ferry  boat  carrying  ammunition  which  ex- 
ploded and  sank  off  Taman.  The  crew  was  rescued^ 

The  Italian  midget  submarines  CB  "1!I  and  "2"  put  in  to  Sulina 
because  of 'bad  weather.  PT  boat  S  "49"  entered  Ivanbaba  from 
Constant za„ 

The 'tanker  OSSAG  convoy  entered  Burgas  on  the  evening  of  22 
Jul.  and  proceeded  to  Varna  on  23  Jul„  On  22  Jul0,  3  enemy 
planes  were  observed  laying  mines  in  the  Area  Sulina-Ismail. 

Convoy  and  ferry  traffic  was  carried  out  according  to  schedule 
and  without  disturbances,.  • 

VIII.  Situation  in  East  Asia: 


No  reports  have  been  received. 

24  Jul.  1943 

Items  of  Political  Importance: 

No  special  information  has  been  received,, 

Conference  on  the  Situation  with  Chief.  Naval  Staff: 

I.    Chief,  Naval  Intelligence  Division  reported,  as  a  re- 
sult of  the  ordered  investigation,  that  the  reopening  of  the 
Mediterranean  shipping  route,  would  reduce  traffic  in  the 
Capetown  area  to  53$,  I.e.  from  11  to  6  ships  per  day.  A 
traffic  reduction  of  about  50$  would  also  be  likely  on  the 
Natal-Freetown  and  Freetown-Capetown  routes. 

These  figures  show  the  direct  influence  of  the  loss 
of  Tunis  on  the  submarine  anti-merchant  ship  campaign,, 

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24  Jul.  1943 

In  a  highly  restricted  circle: 

II.  In  connection  with  the  report  by  Naval  Staff,  Opera- 
tions Division,  Chief  of  Operations  Branch  on  the  setting  up 
of  Italian  coastal  artillery  in  the  Greek  area,  Chief,  Naval 
Staff  ordered  that  the  question  of  occupying  Corfu  with  strong 
German  forces  be  investigated. 

Naval  Staff.,  Operations  Division,  Chief,  lane  Warfare  Section 
reported  on  the  possibility  of  using  ground  mines  in  the  Med- 
iterranean. Depth  conditions  are  unfavorable  almost  every- 
where. The  only  suitable  place  is  a  stretch  of  water  about 

25  miles  wide  off  the  Nile  delta.   Taranto  is  out  of  the 
question  because  deep  water  comes  directly  up  to  the  outer 
harbor. 

III,  Report  by  Naval  Staff,  Chief,  Naval  Communications  Di- 
vision on  the  general  status  of  the  radar  services.  It  is  re- 
quired that,  within  three  months,  every  submarine  putting  to 
sea  be  equipped  with  "Netzhemd",  wave-length  indicator  and 
"Vphrodite"  or  "Thetis". 


*n 


IV.   admiral,  Fuehrer  Headquarters  reported  on  the  Fuehrer's 
conference  with  the  Duce  at  Villa  Feltre.  according  to  this 
statement,  the  Duce  agreed  with  the  Fuehrer's  ideas  in  regard 
to  drastic  changes  in  the  positions  of  command,  but  did  not 
plan  to  consider  putting  them  into  practice  until  some  later 
date.  In  view  of  this  indirect  refusal,  it  is  understandable 
that  the  meeting  was  not  satisfactory  to  the  Fuehrer.  The 
willingness  shown  by  General  Ambrosio  in  regard  to  the  demands 
put  forward  by  Chief,  Armed  Forces  ^igh  Command  concerning 
German  command  in  Sicily,  Greece  and  Southern  Italy,  reinforce- 
ment of  Italian  troops  and  Italian  transport  and  supply  serv- 
ices is  almost  shocking.   The  Fuehrer,  in  any  case,  expects 
the  Italian  Armed  Forces  to  break  down  sooner  or  later  and 
does  not  believe  that  Ambrosio' s  promises  will  be  kept.  It 
seems  that  there  is  already  a  certain  amount  of  Italian  sabo- 
tage in  the  transport  service.'  It  is  the  Fuehrer's  plan  to 
hold  Italy,  as  far  as  possible,  with  German  forces,  possibly 
assisted  by  some  loyal  Italian  divisions.  The  Fuehrer  is 
particularly  concerned  about  Crete.   He  instructed  that  Chief, 
Naval  Staff  be  asked  whether  submarine  operations  in  the 
Aegean  arc  feasible. 

Chief,  Naval  Staff  has  already  given  consideration  to  this 
question.   It  would  necessitate  sending  3-4  more  submarines 
to  the  Mediterranean.  Experience  shows  that  with  the  present 


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24  Jul,  1943 

standard  of  anti-aircraft  and  anti-location  defense  on  sub- 
marines, a  breakthrough  at  Gibraltar  is  not  justifiable. 
Three  out  of  the  List  four  boats  sent  were  lost  in  the  Straits. 
The  fourth  boat  was  soon  destroyed  in  the  ilediterranean  with- 
out achieving  a  single  success.  The  situation  will  be  much 
more  favorable  within  a  couple  of  month sa  Chief  of  Naval  Staff 
postponed  his  decision.  He  later  decided  that  three  boats 
should  again  be  assigned  to  the  Mediterranean, 

Special  Items: 

In  a- personal  letter  to  Commander  in  Chief,  Navy  dated  19 
Jul.,  the  Japanese  Naval  Attache,  Berlin  gives  a  list  of  all 
the  weaoons,  equipment  and  drawings  handed  over  by  the  Japa- 
nese Navy  as  a  contribution  to  the  common  war  effort,  in  ad- 
dition to  those  already  given  to  the  German' Navy.  He  again 
requests  that,  in  the  interests  of  security,  only  the  highest 
and  most  limited  naval  circles  be  informed  and  that,  in  no 
circumstances,  should  any  of  the  data  be  published  or  given 
to  a  third  power « 

The  information  includes: 

'I*    construction  plans  of  the  special  submarine,  92 
pages. 

"2.    construction  plans  of  a  submarine,  type  B,  121 
pages. 

3'.    construction  plans  of  an  auxiliary  aircraft 
carrier \   10  pages. 

4-    general  construction  plan  of  the  newest  cruiser, 
10  pages. 

5i    drawing  of  the  newest  coastal  guard  boat,  1  page 

6.  drawing  of  the  10  meter  telescope  for  submarines 

7.  construction  plan  of  the  double-acting  (dual-ac- 
tion?) two-stroke  Diesel  engine  for  submarines. 

8.  drawing  of  the  scavengc-air  bellows  of  the  dual- 
action  two-stroke  Diesel-engine  for  submarines 0 

9.  drawing  of  the  exhaust  pipe "of  the  dual-action 
two-stroke  Diesel  engine  for  submarines 0 

10.  construction  plan  for  exhaust  valves  of  the  Diesel- 
engine, 

11.  construction  plan  of  the  removable  clutch  of  the 
Diesel-engine  for  submarines, 

12.  drawing  for  the  evaporating  plant  for  submarines, 

13.  description  and  drawing  of  the  echo  detection 
gear. 

14*   description  of  the  American  mine  for  submarines. 


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24  Jul.  1943 

Chief,  Naval  Staff,  on  behalf  of  Commander  in  Chief,  Navy  has 
expressed  the  Navy's  appreciation  and  promised  that  security 
will  be  maintained  as  requested.  The  matter  will  be  followed 
up  by  Naval  Staff,  Quartermaster  Division. 

Situation  on  24  Jul.  1943 

I.    War  in  Foreign  Waters; 

1.  Enemy  Situation; 

According  to  an  Intelligence  report  of  7  Jul. 
from  the  USA,  received  from  a  very  reliable  Ostrov  agent,  a 
troop  convoy  of  about  60  freighters  and  transports  sailed 
from  Wilmington,  Charleston,  Baltimore  and  Philadelphia  be- 
tween 22  and  24  Jun.,  escorted  by  40  -  50  warships  including 
the  battleship  WASHINGTON,  several  cruisers  and  at  least  4 
new  destroyer  escorts.   There  were  also  at  least  3  auxiliary 
aircraft  carriers,  known  to  include  the  GLACIER  and  the  NASSAU. 
Among  the  troop  transports  were  large  vessels  such  as  the 
MAURITANIA  which  entered  Cheasepeake  Bay  at  the  end  of  Apr* 
from  the  Panama  Canal,  as  well  as  the  BERENGARIA,  AQUITANIA, 
GEORGIC,  WEST  POINT,  QUEEN  ELIZ-'^ETH  etc.   It  has  been  learned 
that  this  convoy,  with  the  same  (or  similar)  ships,  is  to  sail 
again  between  17  and  20  Jul., "so  that  it  must  be  expected  to 
be  back  between  13  and  15  Jul.  The  freighters  in  the  convoy 
are  all  new,  fast  ships  of  the  C  Ill-class „  Strong  British 
defense  forces  have  been  awaiting  the  convoy  out  to  sea.  'All 
the  transports  are  heavily  loaded  some  being  unusually  so.   It 
is.  believed  that  this  convoy  travels  at  an  average  speed  of 
15~l6  knots  and  will  take  a  very  northerly  route.  Unloading 
time  in  England  will  be  unusually  short  due  to  specially  care- 
ful organizational  preparations  in  the  English  west  coast 
ports* 

2.  Own  Situation; 

Naval  Attache,  Tokyo  cables  that  5  Japanese  sub- 
marines arc  now  operating  in  the  area  west  of  90°  and  north 
of  0°  and  that  there  will  be  7  submarines  there  from. Sept. 
onward. 

It  will  be  necessary  to  come  to  an  agreement  in  regard 
to  "Monsoon"  operational  area  so  that  the  Japanese  may 
make  their  arrangements  in  time. 

Naval  Staff  has  confirmed  receipt  of  the  courier  mail  and  the 
war  diary  of  Ship  "28"  to  Naval  Attache,  Tokyo.  (See  telegram 
1957). 

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24  Jul.  1943 

II,   Situation  West  Area: 

1,  Enemy  Situation: 

According  to  air  reconnaissance,  at  0911,  there 
were  1  aircraft  carrier  and  5  destroyers,  on  course  210°^  at 
low  speed,  in  BE  6883-  Group  West  assumes  that  this  is  the 
same  group  as  the  similar  one  observed  on  22  Jul.  and  on  23 
Jul,   The  cruiser  reported  in  BE  6645  at  1515  on  23  Jul,  is 
believed  to  have  been  a  mistaken  observation  of  a  destroyer. 
Group  West  believes  that  the  aircraft  carrier  group  is  the 
easterly  long-range  defense  in  the  BE  60  area  for  the  south- 
bound convoy  observed  in  BE  5676  on  22  Jul.  as  well  as  for  ' 
other  convoys  which  may  not  have  been  detected.   In  any  case, 
the  Group  does  not  think  it  likely  that  the  carrier  group's 
main  mission  is  anti-submarine  action.  The  planes  sighted 
were  too  antiquated  for  this  purpose.   In  fact  from  the  type 
of  plane  it  might  even 'be  presumed  that  the  ships  were  auxil- 
iary aircraft  carriers. 

From  the  fact  that,  on  23  Jul,,  our  planes  did  not  again 
sight  the  southbound  convoy  observed  on  22  Jul.,  Group  West 
concludes  that  — .  apparently  due  to  the  successful  operations 
of  the  FW  200  —  planes  on  12/13  Jul,  —  the  convoy  route  has 
been  moved  further  to  the  west. 

Apart  from  the  3  destroyers  sighted  on  22  Jul,  in  BF  7534, 
no  naval  forces  have  been  recently  observed  in  spite  of  re- 
peated reconnaissance.  Group  West  is  therefore  of  the  o— 
pinion  that  the  previous  assumption  of  a  fixed  anti-submarine 
position  is  not  confirmed, 

2,  Own  Situation: 

Atlantic  Coast: 

On  22  Jul.,  one  ELM/j-mine  was  cleared  off  Lorient 
by  a  minesweeping  plane  and,  on  23  Jul,,  one  ELM/n-mine  was 
cleared  off  the  Gironde  by  a  mine-exploding  vessel.  One  ELM/J- 
mine  was  cleared  off  St.  Nazaire, 

&th  Destroyer  Flotilla  returned  to  Royan  and  Le  Verdon  at  2330 
after  completing  its  submarine  escort  trip  as  scheduled.  Com- 
mander of  8th  Destroyer  Flotilla  will  transfer  with  destroyer 
Z  "24"  to  Bordeaux  on  25  Jul,  for  urgent  repairs 0  The  two  op- 
erational destroyers,  Z  "32"  and  Z  "37"  will  move  to  Pauillac 
on  25  or  26  Jul, 


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24  Jul,  1943 

Group  West  plans  to  escort  submarines  U  "46l"  and  "462"  with 

4  boats  of  5th  Torpedo  Boat  Flotilla  up  to  8°  West,  so  that 
the  submarines  can  be  dismissed  at  nightfall.  Escort  for  the 
Italian  submarines  on  about  2  Aug,  by  4  torpedo  boats  up  to 
8°  West  is  also  planned.  In' view  of  the  fuel  situation  and 
the  strain  on  our  air  forces,  the  Group  requests  that  the  sub- 
marine '  convoys  should  be  increased  in  size,  as  possibilities 
permit,   (See  radiogram  2225) o  This  request  was  simultaneously 
submitted  to  Submarine  Division  which  is  mainly  concerned. 

Group  West  again  called  attention  to  the  difficult  personnel 
situation  in  the  area  of  Commanding  Admiral  Defenses  West, 
in  particular  in  regard  to  the  mine  exploding  vessels,  ind 
suggested  that  the  situation  at  the  dockyards  might  be  amelio- 
rated if  all  the  remaining  vessels  of  Store  Ship  Unit  West, 
not  required  for  special  tasks,  were  put  out  of  service  as 
the  Group  sees  no  possibility  of  using  them  within  any  fore- 
seeable period  and  the  immobilization  of  large  crews  of  first- 
class  personnel  who  could  be  usefully  employed  in  the  dockyards 
is  no  longer  justified.  The  group  also  suggested  that  the 
construction  of  the  big  new  freighters  0  11  and  K  11  at  St, 
Nazaire  and  of  the  4  new  tankers  at  Rouen  be  discontinued 
and  that  conversion  of  the  accommodation  ship  USARAMO  at 
Bordeaux  and  completion  of  the  ships  TSNERIFE  and  0LIND-.  at 
St.  Nazaire  be  abandoned.  This  request  will  first  be  ex- 
amined by  Naval  Staff,  Quartermaster  Division.  For  copy 
see  teletype  1955* 

Channel  Coast: 

In  the  Channel,  10  vessels  in  5  convoys  escorted 
by  18  escort  vessels  were  observed.   Four  boats  of  6th  PT 
Eoat  Flotilla  left  Ostend  at  2245  to  investigate  a  barrage 
gap  apparently  made  by  the  British,  xifter  ah  unsuccessful 
s.-.-tW,  the  boats  returned  at  0300  on  25  Jul,  PT  boats  S 
"77"  and  "60"  loft  Boulogne  for  Ostend  at  2245.  PT  boat 

5  "77"  sank  at  C015  on  25  Jul.,  wpst  of  Ostend,  after  a  brief 
engagement  with  4  MGBs.   Some  of  the  crevr  were  picked  up  by 
the  enemy.   PT  boat  S  "68"  reached  Ostend  undamaged.   Com- 
mander 6th  PT  Boat  Flotilla  left  with  five  boats  to  search 
for  survivors  but  returned  without  fulfilling  his  mission. 

III.   North  Sea,  Norway,  Northern  Waters: 

North  Sea: 

Convoy  "1155"  continued  its  voyage  from  Holder  to  the 
Elbe  at  2100  on  23  Jul.   Convoy  "452",  of  2  steamers  under 

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24  Jul.  1943 

escort  of  6  patrol  boats,  left  the  Elbe  at  1100  for  Hook  van 
Holland,,   Three  minesweepers  and  1  submarine  chaser  are  going 
with  the  convoys  which  will  be  piloted  through  the  minefields 
up  to  Helder  by  7th  Minesweeper  Flotilla.  No  other  special 
reports  have  been  received  from  the  areas  of  Commanding  Ad- 
miral, Defenses  West  or  Naval  Command  North a 

Norway,  Northern  Waters : 

1.  Enemy  Situation: 

According  to  Radio  Intelligence  air  activity  over 
the  North  Sea  was  normal*   Twenty-three  planes  were  detected. 
Our  air  reconnaissance  reported  at  0940  3  merchantmen  and  3 
guard  boats  on  course  350°  north  of  Cape  Gorodetzki  and,  at 
1035,  a  convoy  of  3  merchantmen  with  3  escort  vessels,  2  de- 
stroyers, and  1  plane  on  course  300°  in  AG  8920  (north  of 
Murmansk).  According  to  a  report  from  submarine  U  "601"  1 
guard  boat  was  observed  standing  off  and  on  in  AT  7261  (north- 
west coast  of  Novaya  Zemlya). 

At  1645,  air  reconnaissance  sighted  3  PT  boats  and  1  mine- 
sweeper at  high  speed  on  an  easterly  course  about  50  miles 
east  of  the  Shet lands.   The  Russians  have  officially  denied 
the  German  report  of 'a  landing  attempt  near  Vardoe  in  north- 
ern Norway  on  19  Jul. 

2.  Own  Situation: 

At  1400,  about  50  U.S.  planes  attacked  the  dock- 
yards and  the  naval  depot  at  Trondheim.  almost  all  of  these 
unprotected  buildings  and  dockyard  stores  as  well  as  the 
workshops  were  more  or  less  affected  or  destroyed.   The  de- 
pot's permanent  stores  were  completely  burned  out  and  the 
communications  store  was  destroyed  by  direct  hit. 

Submarine  U  "622"  was  sunk  without  casualties;  the  submarine 
dock-yard  was  heavily  damaged.  "  The  ship  biiilding  and  engine 
building  sections  were. put  completely  out  of  action  as  well 
as  part  of  the  torpedo  and  artillery  sections.  Submarine 
U  "354"  left  hurriedly  for  Narvik.  No  detailed  reports  have 
yet  been  received  on  destroyer  Z  "28". 

Another  stronger  enemy  bomber  formation  attacked  war-induatry 
installations  in  the  area  Kristiansand  South.  The  saltpeter 
works  and  piers  at  Hcrosa  were  sever ly  damaged* 


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24  Jul.  1943 

Also  during  the  night  of  23  Jul.  and  during  the  early  morn- 
ing, the  enemy  developed  strong  air  activity  in  the  Bergen 
and  Stadlandet  area.  At  0846,  one  of  our  southbound  convoys 
was  unsuccessfully  attacked  with  bombs  in  that  area* 

The  intensification  of  the  enemy  air  offensive  in 
the  Norwegian  area  may  —  amongst  other  things  -  serve 
as  a  preparation  for  a  future  Allied  landing,. 

Thirty  ships  were  escorted  to  the  north  and  28  ships  to  the 
south.  Twelve  ships  are  held  up  in  the  Arctic  Coast  area  due 
to  lack  of  escort.  For  the  preliminary  report  from  mine 
clearance  ship  KAISER  on  the  performance  of  the  mine  opara- 
tion  and  a  previous  enemy  air  attack,  see  teletype  1215. 

Naval  Staff  has  informed  Group  North  Fleet,  Commanding  Admiral 
Cruisers,  Admiral,  Northern  Waters  and  Commander,  Submarines 
Norway  of  observations  concerning  the  activity  of  Russian 
torpedo  recovery  vessels  in  the  waters  of  Novaya  Zemlya,  For 
copy  of  teletype  l/Skl.  I  op  22153/43  Gkdos.  sec  War  Diary 
Part  C,  Vol.  II  a. 

IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

No  reports  have  come  in. 
V. Submarine  Warfare: 

U  "197"  torpedoed  a  big  tanker  in  KQ  4770. 

U  "183",  "188",  and  "168"  have  been  supplied  by  U  "155". 

Naval  Staff,  Submarine  Division  has  submitted  the  operational 
order  "Panama  Canal"  for  submarine  U  "214".'  It  calls  for  no 
comment  by  waval. Staff,  Operations  Division, 

VI.   Aerial  Warfare: 

British  Isles  and  Vicinity: 

3rd  Air  Force  had  110  planes  in  operation  in  the  West 
area  and  10  planes  in  the  Mediterranean,, 

During  the  day,  fighter-bombers  and  fighters  attacked  traffic 
installations  in  the  occupied  Western  territories  with  gun- 
fire and  bombs. 

Long-range  reconnaissance  planes  were  observed  in  the  Melefeld 

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CONFIDENTIAL 
24  Jul.  1943 

and  Bremen  areas  as  well  as  in  Denmark.  During  the  night  of 
24  Jul.,  51  of  our  bombers  were  sent  out  to  mine  the  Humber. 
The  enemy  made  a  heavy  attack  on  Hamburg  with  very  strong 
forces.  Very  considerable  damage  was  done.  The  dockyards 
were  also  strongly  affected.  Only  a  small  number  of  planes  - 
13  in  all  —  were  shot  down, 

Mediterranean  Theater: 


Photographic  reconnaissance  was  mr.de  of  Bougie,  Jijelli 
and  Philip^eville o  In  the  forenoon,  strong  enemy  forces 
attacked  Bologna  where  an  ammunition  train  in.;the  station  was 
hit.   Furthermore,  all  the  guns  of  a  12.8  cm  railway  battery 
were  destroyed  and  great  damage  was  done  to  the  town.   In  the 
night  of  24  Jul.,  Leghorn  was  attacked  by  60-80  planes  which 
returned  to  England  via  France. 

Eastern  Front: 

The  strong  enemy  air  activity  in  the  area  of  5th  Air 
Force  has  already  been  reported  under  Situation  in  Norway, 
Northern  "Waters.  In  spite  of  effective  hits  observed,  no 
enemy  planes  were  shot  down  by  our  fighters. 

VII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

L«    Enemy  Landing  in  Sicily: 

Situation  on  Land: 

In  West  Sicily,  strong  enemy  forces  advanced  up 
to  the.  coast  northwest  of  Palermo  on  23  Jul.  Trapani  was 
occupied  by  the  enemy.  In  front  of  the  bridgehead,  the  en- 
emy1 s  main  thrust  has  shifted  towards  the  right  wing  of  our 
central  front.  A  thrust  by  a  German  group  towards  Palermo 
waa  stooped  east  of  Termini  by  flanking  artillery  fire  from 
land  and  sea  and  had  to  be  given  up. 

Situation  at  Sea: 

During  the  night  of  22  Jul.,  the  coastal  road 
Termini  -  Cape  Cefalu  was  bombarded  from  the  sea.  Enemy 
landing  traffic  continued  to  be  concentrated  on  the  southern 
coast  of  the  Island,  At  0245,  7  ships  were  sighted  sailing 
north,  35  miles  southwest  of  Trapani,  Possible  ports  cf  des- 
tination arc  Trapani  or  Palermo.  At  0250,  air  reconnaissance 
reported  7  more  ships  70  miles  east  of  Cape  Passero  and,  at 


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a 


CONFIDENTIAL 
24  Jul.  1943 

C407,  a  destroyer  sailing  northeast  in  the  southern  exit  of 
the  Messina  Strait*  At  1020,  an  enemy  submarine  was  located 
14  miles  west  of  Cape  Hilaszo. 

No  reports  of  successes  by  our  own  or  the  Italian  submarines 
have  been  received. 

PT  boats  5  "60"  and  "154"  moved  from  Salerno  to  Taranto.  Th 
extensive  destruction  of  Italian  traffic  installations  in 
Calabria  has  delayed  the  torpedo  transport  still  further. 
The  PT  boats  will  be "unable  to  operate  until  the  night  of  26 
Jul.  at  the  earliest*. 

For  the  night  of  24  Jul.,  fast  escort  vessel  3G  "14"  is  to 
operate  with  4  motor  minesweepers  in  the  southern  exit  of 
the  Straits  of  Messina, 

2.    Sneny  Situation  in  Other  Parts  cf  the  Mediterranean 
Theatre; 

Together  with  the  convoy  which  left  Gibraltar  on 
the  evening  of  23  Jul.,  a  landing  craft  transport  vessel  of 
the  DEWDH/iL— type  also  left  port.   On  the  evening  of  24  Jul* 
2  transports  and  2  destroyers  entered  the  harbor  from  the 

literranean*  In  the  forenoon,  a  convoy  of  6  transports 
with  1  DIDO-class  cruiser  and  1  destroyer,  as  well  as  6  es- 
cort boats  left  the  harbor  for  the  west.  According  to  In- 
telligence reports,  2  of  the  transp.rts  were  carrying  pris- 
oners from  Sicily  as  well  as  soldiers  on  leave  and  civilians 
from  Gibraltar c  AJLL  the  other  ships  were  empty* 

No  shipping  traffic  was  observed  in  the  Western  Mediterranean, 
and  there  were  no  enemy  forces  in  the  sea  areas  between  Sar- 
dinia, Sicily  and  Cape  Bon  during  the  forenoon* 

The  reconnaissance  photographs  of  Bougie,  Jijelli  and  Phil- 
ippeville  furnished  little  new  inforiaation*   A  number  of 
landing  vessels  were  seen  at  Bougie  and  Jijcllie  Sighting 
reconnaissance  of  Bone  and  Bizerte  likewise  produced  no  par- 
ticular results.  No  indications  were  obtained  as  to  the 
location  of  naval  forces* 

According  to  an  Intelligence  report  fr  : a  an  agent  of  untested 
reliability,  French  naval  officers  are  cf  the  opinion  that 
the  main  offensive  planned  against  Sardinia  and  Corsica  has 
been  only  temporarily  delayed  by  the  unexpectedly  strong  re- 
sistance in  Sicily*  The  operational  purpose  of  capturing  the 
islands,  would  be  to  reach  northern  Italy  and  southern  France 


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24  Jul.  1943 

from  the  sea,  which  is  regarded  as  a  less  dangerous  route 
than  via  Sicily  -  southern  Italy,  In  addition,  the  northern 
islands  are  expected  to  offer  air  bases  for  operations  against 
the  industrial  area  of  northern  Italy  and  against  southern 
France  and  for  the  purpose  of  paralyzing  the  sea  and  railway 
traffic  between  northern  and  southern  Italy*  It  is  also  hoped 
that  occupation  of  the  islands  will  have  political  influence 
in  Spain.  The  operation  is  expected  to  take  place  at  the  end 
of  the  month* 

According  to  another  Intelligence  Report,  15  transports  with 
Moroccan  troops  in  U.S.  uniforms  are  to  leave  Casablanca  for 
the  Mediterranean  on  the  night  of  26  Jul. 

3«    Own  Situation  in  Other  Parts  of  the  Mediterranean 
Theater,  Sea  Transport  Situation: 

The  Italian  steamer  SANTA  LUCIA  (8,000  BRT)  was 
sunk  by  a  torpedo  plane  35  miles  west  of  Naples  at  1010.  One 
Italian  corvette  was  sunk  by  enemy  planes  at  1400  in  the  Straits 
of  Messina  and  a  second  was  damaged.  Furthermore,  one  torpedo 
boat  was  heavily  damaged  and  another  suffered  slight  damage <, 

Two  Italian  torpedo  boats,  1  corvette,  2  motor  minesweepers  and 
1  submarine  chaser  were  on  escort  duty.  One  motorboat  and  1 
steamer  are  en  route  from  Sicily  to  Naples.   One  steamer  was  es- 
corted along  the  western  coast  of  Italy,  No  reports  concerning 
Corsica  -  Sardinia  traffic  have  been  received, 

German  Naval  Command,  Italy  has  forwarded  the  battle-report  on 
the  attack  made  on  the  convoy  of  the  steamer  C0LLEVILLE  and 
ADERN0  on  23  Jul*  For  copy  see  teletype  2030, 

In  Weekly  Report,  15  -  21  Jul.,  German  Naval  Command,  Italy 
states  that  the  enemy  continues  to  patrol  the  whole  of  the 
Tyrrhenian  Sea  so  that  nearly  every  German  convoy  is  detected 
and  attacked.   The  only  means  by  which  the  convoys  can  avoid 
attack  is  by  dividing  the  route  into  short  subsections „   Con- 
voys have  been  ordered  to  put  in  to  the  nearest  port  as  soon 
as  the  enemy  is  sighted.   The  supply  of  Sardinia  and  Corsica 
has  been  affected  by  the  sinkings  of  the  past  week.   In  Sicily 
only  Milazzo  can  now  be  used  by  supply  sterjners.  Evacuation 
of  the  Palermo  area  by  naval  landing  craft,  is  unfeasible  due 
to  the  development  of  the  land  situation.  Our  large-ship 
space  is  heavily  strained  by  sinkings*  Ships  over,  5,000  BRT 
can  no  longer  be  used.  All  supplies  are  being  carried  by 
small  vessels*  Traffic  difficulties  arc  delaying  supply  ship- 
ments to  such  an  extent  that  nearly  2,000  tons  of  shipping  had 
to  await  loading  for  several  days.  Fast  escort  vessel  SG  "14" 
has  been  withdrawn  from  escort  duties  for  combat  operations  in 

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24  Jul.  1943 


the  Messina  Strait „  Italian  minelayers  have  laid  more  barrages 
off  Trapani.  Motor  minesweepers  have  been  used  only  once  so 
far  for  defense  of  the  Messina  Strait. 

The  mine-ships  POMMERN  and  BRANDENBURG  left  Toulon  at  2000 
with  the  Commander,  3rd  Escort  Flotilla,  for  minelaying  op- 
erations "Hans  I  a"  up  to  "Dora". 

4.    Area  Naval  Group  South: 

Aegean: 

Unescorted  small-ship  traffic  in  the  area  of 
Naval  .Shore  Command,  Salonika  was  suspended  on  23  Jule  be- 
cause of  a  submarine  sighting.  The  German  sea-plane  in 
which  Naval  Shore  Commandant,  Attica  lost  his  life  near  Cor- 
fu, was 'shot  down  by  ships'  guns.  Further  details  are  still 
awaited o 

On  8  Jule,  Group  South  reported  on  anti-submarine  defense 
measures  in  the  Aegean  area  which  are  greatly  hampered  by 
the  lack  of  unified  command,.  Operationally,  the  Aegean  and 
the  southern  Peloponnese  belong  to  three  different  command 
areas 0     In  ad'ition,  the  means  of  defense  are  inadequate. 
This  increases  the  importance  of  obtaining  a  clear  picture 
of  the  enemy's  submarine  situation  in  order  that  our  defense 
forces  may  be-  used  at  the  right  place  and  at  the  right  mo- 
ment,. The  problem  can  only  be  solved  by  having  unified  com- 
mand throughout  the  Aegean.  The  group  therefore  requests 
that  the  submarine-reporting  network  be  reorganized  and  sup- 
plemented to  include  all  vessels  at  sea  and  all  observation 
posts  on  land  as  well  as  the  Air  Force0   The  prerequisites 
are  a  well  organized  and  uniform  observation  service,  and  a 
closely  centralized  reporting  network  to  be  used  exclusively 
for  anti-submarine  defense  if  possible.  It  is' desirable  to 
establish,  at  the  office  of  Commanding  Admiral,  Aegean,  a 
central  anti-submarine  defense  authority  with  German  and  I— 
talian  personnel  and  with  a  special  reporting  network,  so 
that  the  overall  anti-submarine  campaign  of  Commanding  Ad- 
miral, Aegean  may  be  organized  in  accordance  with  convoy  move- 
ments,,  Commanding  Admiral,  Aegean  has  been  instructed  to  get 
into  early  touch  with  the  neighboring  Italian  areas  with  a 
view  to  effecting  this, 

Naval  Staff  has  ordered  Chief,  Naval  Communications  Division 
that  the  required  reporting  network  be  set  up  at  once  and  the 
advisability  examined  of  sending  a  fully-empowered  officer 
from  Chief,  Naval  Communication  Division  immediately  to  the 
Aegean  area  in  order  to  carry  out  and  assist  in  the  task. 


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24  Jul.  1943 

German  Naval  Command,    Italy  was  ordered  by  Naval  Staff  on  18 
Jul,,   with  copy  to  Group  South,    Commanding  Admiral,   Aegean 
to  forward  the  following  letter  to  the   Italian  Admirality: 

"The  increased  numbers  of  enemy  submarines  and  the  an- 
ticipated    further  aggravation  of  the  submarine  situation  in 
the  Aegean  call  for  energetic  steps  to  improve  anti-submarine 
defenses  in  that  area.     It  must,   for  example,  be  avoided  that, 
in  spite  of  enemy  submarines  having  been  repeatedly  observed 
off  Leros  in  the  Dodecanese,   an  important  convoy  of  steamers 
and  t. ankers  is  dispatched     without  anti-submarine  escort  up- 
on orders'  from  Rhodes  and  is   successfully  attacked  by  an  enemy 
submarine;   although,   two  hours  later,   a  convoy  of  naval  land- 
ing craft,  with  two  German  submarine-chasers  is  taking  the 
same  route  and  a  third  German  submarine-chaser 'is   present  with 
a  convoy  in  the  same  area  and  at  the  same  time. 

In  the  opinion  of  Naval  S^aff,    the  defects  in  the  anti-sub- 
marine defense  to  date  have  been: 

1,  Lack  of  unified  command  in  submarine  hunting 
throughout  the  Aegean  (including  the  Italian  area), 

2,  Differences  in  operational  views  and  organization* 

3*         Failure  to  report  quickly  on  enemy  submarines  and 
anti-submarine  defense  measures  ordered  or  planned  by  the 
Italian  Naval  Shore  Commandant, 

4.         Absence  of  a  unified  and  well-organized  special 
submarine  reporting  network  covering  the  entire  Aegean  area 
for  which  land  observation  posts  on  the  islands  should  be 
included  or  set  up  and  comprising  all  naval  and  air  forces 
at  sea. 

In  the   opinion  of  Naval  Staff,    in  order  that  the  best  possible 
use  may.be  made  of  the  numo  "rically  insufficient  anti-submarine 
forces,    it  is  desirable  to   set  up  a  central  anti-submarine 
defense  command  at  the  office  of  the  Commanding  Admiral,   Aegean, 
with  German  and  Italian  personnel  and  with  a  special  anti- 
submarine defense  reporting  network  and  that  Commanding  Admiral, 
Aegean  should  assume  control  of  the  whole  anti-submarine  cam- 
paign in  the  Aegean,   including  the  Italian  area,    for  coordina- 
tion with  the   movements  of  convoys.     To  this  end  the   central 
command  will  have  to  be  authorized  to  control  convoys  also 
in  the  Italian  areas  of  command  and  to  call  on  all  naval 
forces   avaiLablc  throughout  the  Aegean  area,    including  the 
Dodecanese  and  the  southern  Peloponnese,   but  in  both  cases 


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24  Jul, 1943 

only  for  purposes  of  anti-submarine  defense. 

Naval  Staff  would  appreciate  a  statement  of  views  on  this 
suggestion  and,   in  case  of  approval,   corresponding  directives 
to  the  Italian  authorities  in  the  Aegean. 

Black  Seat 

In  an  enemy  air  attack  on  Yalta  at  noon  on  22  Jul. 
a  total  of  70  bombs  were  dropped  from  an  altitude  of  3,000 
meters.   No  important  damage  was  sustained. 

A  supplementary  report  states  that  the  harbor  area  of  Tagan- 
rog was  shelled  from  the  direction  of  Morskaya  on  the  evening 
of  21  Jul.  No  damage  was  caused0 

Group  South  reports  that  execution  of  the  special  operation 
against  the  landing  bridgehead  Myshako  by  6  boats  of  1st  PT 
Boat  Flotilla  was  hindered  by  the  weather  conditions.  At  2222, 
twelve  torpedoes  were  fired  against  landing  places  B  and  C 
as  ordered.  At  2300,  the  Army  opened  a  surprise  bombardment 
of  the  torpedoed  landing  places.  Air  Force  participation  as 
arranged  was  cancelled'  because  of  the  weather.   Simultaneous 
with "the  torpedo  salvo,  the  landing  stages  were  shelled  by 
4  cm.  and  2  cm0  artillery.  After  leaving  the  scene,  the 
Flotilla  was  fired  oh  from  the  coast  by  artillery  of  7*5  cmc 
and  heavier  calibres. 

The  Operations  by  11th  PT  Boat  Flotilla  were  cancelled  due 
to  the  bad  weather. 

The  bombardment  of  the  enemy  front  at  Mius  by  3  naval  artil- 
lery lighters  and  1  motor  minesweeper  was  postponed  for  24 
hours  also  because  of  the  weather.  Nor  was  the  patrol  line 
Temrjuk  taken  up,  during  the  night  of  24  Jul. 

The  tug  H0EFLZIN,  in  the  53rd  Kerch-Temr j uk  -transport,  sank 
on  her  way  back  16  miles  northwest  of  Temrjuk  after  hitting 
a  mine.  Eleven  men  are  missing.   The  route  has  been  closed 

At  .0855,  the  convoy  PR0D0M0S  en  route  from  Sevastopol  to  Con- 
stantza  was  unsuccessfully  attacked  by  an  enemy  submarine  35 
miles  east-southeast  of  Sulina.   Ship  "19"  has  been  sent  out 
to  hunt  the  submarine.  Otherwise,  the  supply  and  escort  traf- 
fic went  according  to  plan. 

The  Supplies  carried  by  the  Navy  from  11—23  JulP  amounted  to 
32,998  tons  from  a  total  of  51,544  tons. 


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CONFIDENTIAL 
24  Jul.  1943 

VIII,  Situation  East  Asia: 

According  to  Reuter,  the  loss  of  the  U.S.  submarine 
TRITON  in  the "Southwest  Pacific  has  been  officially  announced 
in  Washington. 

A  heavy  enemy   bombing  attack  was  made  on  Soerabaya,  Reuter 
reports  that  the  Americans  who  landed  at  Nassau  Bay  in  New 
Guinea  have  advanced  up  to  the  coast  of  Tampu  Bay# 


25  Jul.  1%3 
Sunday 

Items  of  Political  Importance: 

In  Italy,  the  internal  political  situation  has  suddenly  taken 
an  unexpected  and  serious  turn.  Mussolini  has  been  induced 
to  surrender  his  executive  powers  to  the  King  who  has  set  up 
a  provisional  military  government  under  Marshal  Badoglio* 
From  the  proclamations  issued  by  the  King  and  Badoglio,  it 
is  gathered  that  the  war  is  to  continue  and  that  Italy  will 
stand  by  her  pledges.   Time  will  show  how  far  this  promise 
will  be  kept*  It  remains  to  be  seen  if  Badoglio' s  Government 
is  able  to  resist  the  strong  internal  and  external  pressure- 
which  will  be  brought  to  bear  and  to  keep  its  word.  If- not, 
the  development  of  the  situation  will  demand  decisive  steps 
on  our  part.  As  developments  are  still  uncertain  and  the 
situation  is  wide  open,  it  is  indispensible,  as  a  precaution, 
to  prepare  for  all  eventualities » 

Chief,  Naval  Staff  has  decided  to  go  to  Fuehrer  Headquarters 
early  on  the  morning  of  26  Jul.  together  with  Chief,  Naval 
Staff,  Operations  Division  and  Chief,  Naval  Staff,  Quarter- 
master Division,, 

Special  Items: 

I.    An  order  from  High  Command,  Navy,  Personnel  Division 
of  19  Jul.,  regulates  the  transfer  of  officers  to  the  sub- 
marine arm  as  from  1  Jan.  1944o  For  copy  of  the  order  as  per 
1/Skl  20622/43  Gkdos  see  War  Diary,  Part  B,  Vol.  V. 

II„   The  directive  on  the  use  of  sea-mines  with  new  firing 
devices  issued  by  Chief,  Armed  Forces  High  Command  on  14  Jul. 
runs  as  follcws: 


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CONFIDENTIAL 
25  Jule  1943 
Sunday 

1.  In'  accordance  with  the  suggestion  of  Commander 
in  Chief,  Navy,  the  Fuehrer  has  decided  that  the  mines  with 
the  new  firing  devices  are  to  be  put  into  sudden,  massed  op^- 
eration  by  the  Navy  and  Air  Force  simultaneously  at  the  end 
of  Aug.  1943,' in  the  convoy  routes  around  the  British  Isles,. 
In  using  them,  everything  must  be  done  to  prevent  their  fall- 
ing into  the  hand  of  the  enemy* 

2.  Details  of  the  minelaying  operations  will  be 
arranged  by  direct  agreement  between  the  Navy  and  Air  Force 
and  plans  will  be  reported  before  the  start  of  operations. 

This  decision  does  not  comprise  any  proposal  for 
adequate  allotment  of  forces  to  the  Air  Force* 

In  order  to  establish  the  Navy's  possibilities  and  plans  for 
the  purpose  of  making  direct  arrangements  with  the  Air  Force 
as  ordered,  Naval  Staff,  Operations  Division  compiled  a  com- 
prehensive statement  which  has  been  forwarded  to  Group  West, 
and  Commander  PT  Boats  for  detailed  comment  and  to  Bureau 
of  Naval  Armament,  Underwater  Obstacles  Branch,  as  a  guide 
for  material  preparations,,   For  copy  of  the  statement  as  per 
2/Skl  I  E  2056/43  Gkdos.  Chefs,  see  War  Diary  Part  C,  Vol. 
VI. 

Situation  on  25  Jul.  1943 

I.    War  in  Foreign  Waters: 

1.    Enemy  Situation: 

According  to  radio  intelligence,  Commanding  Ad- 
miral, 3rd  Fleet  issued  warning  to  merchantmen  on  23  Jul. 
against  submarines  sighted  on  22  Jul.  in  l^0^^1    South  16820 
East. 

According  to  Naval  Intelligence  Division,  17  ships,  most  of 
them  Liberty  freighters,  were  identified  during  one  month  en 
route  from  the  U.S.  via  Australia  to  India  -  Sueze  -  Persian 
Gulf.  During  the  same  period,  13  tankers  traveling  between 
the  Persian  Gulf  and  Australia,  and  16  freighters  on  the 
route  Suez  -  India  -  Australia  were  reported. 

According  to  an  Intelligence  report  from  Spain,  steamers 
at  0900  on  23  Jul.  sighted  4  U.S.  destroyers  on' an  easterly 
course  in  34°09!  North  08c17'  '/est  and,  at  1300,  2  French 
destroyers  on  patrol  service  in  33°37'  North  08°17f  West. 


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I 


CONFIDENTIAL 
25  Jul*. 1943 
Sunday 

2.         Ovm  Situation;         '"  •—•■•• 

7      -t 

No  reports  have  been  received  from  our  ships « 
Information  on* the  enemy  situation  has  been  forwarded  by 
radiogram  1442© 

II,   Situation  West  Area: 

1.    Enemy  Situation: 

Thirty-two  planes  were  detected  over  the  Bay  of 
Biscay,  According  to  locations,  one  British  ship  was  in  BF 
6590  at  1302  and  one  in  BF  145°  at  1844,  At  1032,  our  air 
reconnaissance  observed  5  destroyers  on  course  170°  in  BF 
7221. 

Group  West  comments  that  this  again  confirms  that 
BF  70  is  now  patrolled  by  the  enemy  and  that  the 
location  at  1302  suggests  further  activity  in  BE 
60. 

According  to  radio  intelligence  a  British  patrol  boat  re- 
ported to  Plymouth  at  0920  that  it  had  brought  in  the  French 
fishing  vessel  MX  2495  with  seven  men  from  Morlaix. 

2»    Own  Situation: 

Atlantic  Coast: 

Two  ELM/A-mines  and  three  ELIi/J-mines  were  cleared 
at  St.  Nazaire  and  one  ELM/j-mine  off  the  Gironde.  On  24  Jul. 
a  French  fishing  boat  struck  a  mine  off  La  Pallice  and  sank. 
On  25  Jul.,  mine  exploding  vessel  "136"  was  hit  by  a  ground 
mine  off  the  Gironde, 

For  the  brief  report  of  Commander,  8th  Destroyer  Flotilla  on 
the  submarine  escort  mission  of  22-24  Jul,  see  teletype  0135« 
On  22  and  23  Jul.  submerged  submarines  were  located  and  at- 
tacked with  depth  charges  in  BF  9239  and  BF  4979  respectively. 
No  results  were  observed.   Commander  Submarines  V/est  confirms 
that  in  both  cases  they  were  enemy  submarines, 

PT  boats  S  "124"  and  S  "134"  moved  from  Peter  Port  to  La 
Pallice,  ... 

Group  West  has  misgivings  about  assigning  destroyers  for  sub- 
marine escort  on  27  Jul0  (for  details  sec  in  teletype  1425) 
and  plans  to  use  torpedo  boats.   Chief,  Naval  Staff  has  ruled 
accordingly. 

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25  Jul.  1943 
Sunday 

Channel  Coast: 

*\t   0640,  the  patrol  position  off  Quistreham  was 
attacked  by  low-flying  planes.   Harbor  defense  vessles  HS 
(Tr0N.  -  HS  fl.  64  apparently  typist's  mistake)  64  and  66 
were  damaged  and  towed  in.  Three  killed  and  ten  wounded. 

Twelve  survivors  of  PT  boat  S  "77"  reached  our  coast  near 
Dunkirk  in  a  rubber  boat.   They  reported  that  S  "77"  was 
blown  up  by  her  crew.   The  commander  and  10" men  are  missing, 
including  4  who  were  probably  picked  by  MTB*  The  admiralty 
has  confirmed  that  a  number  of  survivors  were  rescued.  Secret 
material  was  secured,, 

No  other  important  events  were  reported. 

III.   North  Sea,  Norway.  Northern  Waters: 

North  Sea: 

Eight  ELM/J-mines  were  cleared  on  the  routes  along  the 
Frisian  Islands. 

Elbe-Hook  convoy  "452"  was  engaged  by  9  enemy  motor  gun  boats 
and  6  PT  boats  from  0102  till  0347*  One  PT  boat  was  sunk  and 
several  others  were  damaged.  Patrol  boat  VP  "801"  was  sunk. 
The  commandant  was  among  the  3  killed  and  eight  missing.  One 
man  was  killed  on  minesweeper  M  "254"  and  8  including  the 
commandant,  were  seriously  wounded. 

Group  Ymuiden  of  the  34th  Minesweeper  Flotilla  had  two  en- 
gagements with  enemy  PT  boats  at  0119  and  0356  off  Nordwyk. 
In  each  case,  3  torpedos  were  evaded.  One  enemy  PT  boat  was 
sunk.   The' same  group,  together  with  patrol  boats  VP  "1313" 
and  "1310",  had  another  engagement  with  enemy  PT  boats  south- 
west of  Ymuiden  at  0243-   This  time  2  enemy  PT  boats  were 
set  on  fire  by  gunfire  without  loss  on  our  side.   Convoy 
"452"  reached  Hook  undamaged. 

During  the  night  of  24  Jul.  strong  enemy  air  forces  flew  over 
the  Heligoland  Bight  towards  Hamburg,  Lucbcck  and  Kiel.  Ob- 
servation was  strongly  disturbed  and  for  the  most  part  was 
not  possible  except  on  the  coast .Control  of  anti-aircraft  and 
night-fighter  operations  was  likewise  greatly  hampered  by 
radio  jamming.   The  disturbance  was  found  to  be  due  to  paper 
strips  with  metal  foil  glued  onto  them  which  form  a  location 
cloud  that  remains  in  the  air  for  a  long  time  and  seriously 
upsets  radar  devices,  particularly  on  the  first  appearance. 


-328-  CONFIDENTIAL 


CONFIDENTIAL 
25  Jul.  1943 
Sunday 


'•■>■ 


We  developed  this  same  procedure  a  long  time  ago*  The  best 
defense  is  training  of  radar  personnel  as,  with  some  exper- 
ience, a  distinction  can  be  made  between  stationary  and  mov- 
ing target s0   In  the  afternoon,  the  Fokker  works  at  Amster- 
dam were  attacked  by  15  enemy  planes.  From  1427  onward,  US 
bomber  formations  in  three  groups  were  reported  coming  in 
over  the  Heligoland  Bight.  After  a  battle  with  our  fighters 
100  kilometers  northwest  of  Heligoland,  the  enemy  formed  in- 
to a  new  grouping*  Two  groups  flexv  via  Cuxhaven  to  Hamburg 
and  two  other  groups  headed  for  the  Baltic  Sea* 

■   Norway,  Northern  Waters: 

Radio  Intelligence  detected  13  planes  over  the  North 
Sea.  No  planes  were  observed  operating  in  the  area  of  the 
Iceland  Squadrons 0 

At  0132,  our  air  reconnaissance  reported  3  merchantmen  with 
1  destroyer  and  1  guard  ship  90  miles  west  of  Kolgujev  on' 
course  90°  and,  at  1545,  3  merchantmen  with  4  guard  ships, 
also  on  a  northerly  course,  west  of  Kanin  Noss,  as  well  as  4 
merchantmen  with  1  destroyer  on  course  30°,  close  east  of 
Kolguyev  at  1720.   Strong  convoy  traffic  was  also  observed 
along  the  Kola  coast  on  24  Jul0 

The  submarine  U  625  sighted  a  flying  boat  in  :.T  7277  (west 
of  Belushiya  Bay)„ 

At  1455  -ind  at  1517  a  submarine  was  sighted  on  the  surface 
off  the  Norwegian  west  coast,  20  miles  west  of  Floroey;  how- 
ever, this  was  not  confirmed  by  our  air  reconnaissance „ 

Own  Situation: 

Naval  Command  Norway  has  reported  further  de- 
tails on  the  damage  to  Trondheim  dockyards.   The  following 
vessels  were  sunk:  4  tugs,  1  oil-barge,  1  lifting-lighter 
with  leak-box,  and  the  torpedo  ship  SCHICKSiE.  In  attacks 
on  Torsgrunn,  the  steamer  IRENE  (76I  BRT)  and  1  Swedish 
steamer  (660  BRT)  were  sunk. 

During  the  night  of  25  Jul.,  26  planes  attacked  one  of  our 
convoys  near  Ekkeroey.  Ships '  anti-aircraft  guns  brought  down 
7  enemy  planes.  As  5th  Air  Force  has  reported  an  attack  on 
the  same  convoy  during  the  same  night  by  35  enemy  pLanes  of 
which  17  were  shot  down' by  fighters,  this  can  be  regarded  as 
a  big  defensive  success,. 


-329-  CONFIDENTIAL 


:.:  ?::z::::..l 
25  Jul,  1943 

5un~  -- 

Ihe  FT  boats  re^rted  on' 21  Jul.  on  an  easterly'  course,  150 

I  ■  j  vest  of  Hclnengrae,  were  bombed  by  a  Ju  88   plane  at 
2155  of  the  sane  day.   The  beats  sheered  off  to  the  west. 
In  view  of  the  heavy  air  commitment  in  Norway,  this  Mas  pos- 
sibly a  sea-rescue  formation.  In  addition,  at  1435,  on  24 
Jul.  the  steamer  ALK  was  unsuccessfully  attacked  by  encr 
planes  off  Arendalo 

Fifty— two  ships  were  escorted  to  the  north  and  31  ships  to 
the  south.  Twelve  ships  were  held  up  due  to  lack  of  escort. 

The  submarine  base  ship  has  moved  from  Narvik  to  Skjcinenf jord, 
niral  Northern  YJaters  and  Commander,  Submarines,  Norway 
ved  with  the  GRIULE  and  METEOR  to  Ankcr.es* 

Destroyer  Z  "29"  reports  damage  to  boilers  Mos.  "3"  and  "2" 
and  has  been  ordered  to  find  out  at  Trondlieim  vhether  they 
can  be  repaired  at  the  arsenal  or  by   a  repair  ship, 

IV,   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

1,  Er. :-"-,-  3 i tuat ion: 

activity  in  the  eastern  part  of  the  Gulf  of  Fin- 
land and  in  Kronstadt  Bay  was  generally  unchanged, 

2.  Own  Situation: 

On;  ELM/J  mine  was  cleared  west  of  Middelgrand. 
Otherwise  there  is  nothing  particular  to  report  on  the  naval 
situation  in  the  Baltic  Sea. 

The  enemy  air  formations  which  had  come  in  from  the  North  Sea 
turned  back  in  the  vicinity  of  Darser  Ort  returning  along 
the  Baltic  coast.  Sixty  planes  from  the  scut heist  attacked 

1  from  en  altitude  of  about  6CCO  meters.  One  of  the  for- 
mations that  came  in  over  the  Elbe  estuary  also  flew  intc 
attack  Kiel.  Bombs  fell  mainly  on  the  eastern  shore,  causing 
-age  chiefly  in  the  Howaldt  dockyards  an      Naval  Arsenal. 
For  details,  see  teletype  2312.  Further  reports  are  awaited. 

Submarine  '."erf are: 

U  "199"  sank  a  modern  passenger  freighter  of  1,000  tons 
on  a  ncrthwesterly  course  in  GB  4191» 

No  other  reports  of  successes  have  been  received. 

-330-  "  :f::z::::..i 


CONFIDENTIAL 
25  Jul.  1943 
Sunday 

VI.   Aerial  Warfare: 


British  Isles  and  Vicinity: 

During  the  day,  strong  enemy   formations  flew  into  the 
Baltic  and  North  Sea  areas,  as  well  as  into  the  Netherlands, 
Belgium  and  N0rthern  Franc e„   Besides  the  attack  on  the  Fokker 
works  at  Amsterdam,  the  airfield  at  Voensdrecht  was  attacked,. 
The  raids  on  Kiel  and  Hamburg  have  already  been  reported. 
According  to  reports  so  far  received,  altogether  31  endmy 
planes  were  shot  down  by  fighters  and" 6  by  anti-aircraft  ar- 
tillery P  During  the  night  of  25  Jul.,  another  very  heavy 
attack  with  strong  forces  was  made  on  Essen.  Seven  planes 
were  shot  down  by  anti-aircraft  artillery  and  14  by  night 
fighters.   For  damage,  see  Daily  SituationQ 

Mediterranean  Theater: 


During  the  night  of  24  Jul.,  99  of  our  bombers  raided 
the  harbor  of  Syracuse.  Hits  were  made  on  17  enemy  ships  in- 
cluding 1  freighter  of  5,000  BRT  sunk  by  an  aerial  torpedo 
and  2  freighters  for  a  total  of  15,000  BRT  sunk  by  bombs. 

Between  17  and  24  Jul.,  the  Italian  Air  Force  sank  a  total 
of' 4  steamers  for  38,000  BRT,  and  heavily  damaged  7  ships  for 
51', 000  BRT  and  one  landing  boat  while  8  other  steamers  for 
45,000  BRT  and  one  tanker  were  damaged. 

According  to  photographic  reconnaissance,  there  were  548  enemy 
planes,  including  more  than  500  single-engined  aircraft,  in 
Sicily  on  21  and  22  Jul„ 

Fifty  enemy  fighters  attacked  returning  German  transport 
planes  near 'Cape  Milazzo.  Ten  Ju  52  planes  fell  victims  to 
this  attack. 

It  has  not  yet  been  established  whether  the  planes  were  empty 
or  occupied. 

Eastern  Front: 

For'  the  success  of  our  defenses  near  Vardoe,  see  Own 
Situation,  Northern  Waters. 

VII.  Warfare  in  the  Mediterranean  and  Black  SGa : 

1.    Enemy  Landing  in  Sicily: 

-331-  CONFIDENTIAL 


CONFIDENTIAL 
25  Jul.  1943 
Sunday 

Sit iiit ion  on  Land: 


The  enemy  is  advancing  slowly  on  the  coastal  road 
through  Cefalu  to  the  east.  Our  own  rear  positions  begin  22 
kilometers  east  of  Cefalu  on  the  coast.  Cn  our  left  flank, 
the  enemy  temporarily  withdrew  around  midday  under  the  pres- 
sure of  our  artillery  fire. 

Situation  at  Sea: 

At  2345  on  24  Jul.,  enemy  agents  were  apparently 
landed  by  light  forces  near  Melito  on  the  southern  coast  of 
Italy.  Four  boats  of  3rd  PT  Boat  Flotilla,  enroute  from 
Vibo  Valentia  to  Taranto  temporarily  put  back  to  their  port 
of  departure  on  the  first  news  of  an  alleged  enemy  landing 
near  Melito.  They  proceeded  to  Taranto  at  1330o  In  the  night 
of  23  Jul.,  an  enemy  PT  boat  in  the  Straits  of  Messina  was 
set  on  fire  by  our  anti-aircraft  guns.  During  the  night  of 
24  Jul.,  4  motor  minesweepers  were  out  in  the  southern  exit 
of  the  Straits  of  Messina  but  made  no  contact  with  the  enemy. 
Fast  escort  vessel  SG  "14"  did  not  participate  in  the  opera- 
tion.  Motor  minesweepers  R  "38",  "186"  and  "188"  were  sent 
out  from  Messina  to  search  for  the  10  Ju  52  planes  which  had 
been  shot  down.  During  this  mission,  motor  minesweeper  R  "186" 
was  sunk  at  1530  by  fighter-bomber  attack.  The  other  boats 
were  slightly  damaged.   Two  enemy  planes  were  shot  down.  The 
search  for  the  planes  was  unsuccessful. 

In  a  heavy  air  attack  on  Messina  at  noon  on  24  Jul.,  the  Ital- 
ian torpedo  boat  PARTENOPE  and  the  corvette  CICOGNA  were 
heavily  damaged  and  had  to  be  beached.  No  particular  damage 
was  caused  by  an  air  attack  on  Leghorn  on  the  night  of  24 
Jul.   10th  Landing ' Flotilla  shot  down  1  enemy  plane  in  the 
Straits  of  Messina. 

On  23  Jul.,  4  of  our  naval  landing  craft,  were  damaged  by 
an  enemy  air  attack  near  Cape  Stefano,  50  miles  east  of  Palermo, 
All  boats  had  to  be  blown  up  as  salvage  was  impossible,  A- 
nother  naval  landing  craft  is  trying  to  reach  Naples. 

In  regard  to  the  enemy  situation,  our  air' reconnaissance  ob- 
served 50  ships  including  8  large  vessels,  the  others  probably 
landing "craft,  on  an  easterly  course  20  miles  east  of  Palermo 
at  1850.   The  number  of  ships  in  the  Sicilian  harbors  was 
almost  unchanged, 

German  Naval  Command,  Italy  has  compiled  a  list  of  all  enemy 

-332-  CONFIDENTIAL 


CONFIDENTIAL 
25  Jul.  1943 
Sunday 

ships  detected  by  photographic  and  other  reconnaissance  on 
23  Jul0,  on  the  eastern  and  southern  coasts  of  Sicily,  This 
shows  on  the' east  coast, ' 2  heavy  cruisers,  14  light  cruisers, 

5  destroyers,  2  monitors,  2  gunboats,  8  corvettes,  1  mine- 
sweeper', 2  boom  defense  vessels,  10  PT  boats,  18  auxiliary 
vessels,  1  LSI,  4  LST,  1  LCF,  73  LCT,  20  LCI,  13  LCM,  13  ' 
freighters,  1  tanker,  1  hospital  ship  and  1  special  ship. 
On  the  South  coast  there' were  1  anti-aircraft  cruiser,  2  PT 
boats,  4  motor  gun  boats,  4  small  auxiliary  vessels,  17  LST, 
8  LCT,  20  LCM,  and  13  freighters. 

In  the  sea  area  of  Malta  on  the  same  day,  there  were  4  battle 
ships,  2  aircraft  carriers,  4  light  cruisers,  20  destroyers, 

6  gunboats,  1  minesweeper,  1  net  layer,  17  PT  boats,  20  motor 
gunboats,  8  gun  boats,  6  submarines,  1  LSI,  11  LST,  1  LCF,  15 
LCT,  26  LCI,  2  LCM  and  8  passenger  ships, '33  freighters,  and 
3  tankers,  altogether  totalling  about  280^000  BRT  of  merchant 
ship  tonnage „ 

In  Bizerte,  50  large  and  medium  freighters  were  observed. 

After  the  experience  of  Syracuse  and  Augusta,  Naval  Staff  re- 
gards it  as  out  of  the  question  for  the  defense  of  sea  ports 
and  bases,  and  especially  of  those  which  affect  the  German 
war  at  sea  and  German  supplies,  to  be  left  solely  in  Italian 
hands.   Chief,  Naval  Staff  believes  that  at  the  most  impor- 
tant places  in  southern  Italy  German  defense  facilities  must 
be  incorporated  in  the  Italian  coastal  defenses  and  that,  in 
certain  cases,  the  Italian  installations  should  be  taken  over 
by  Italian  personnel.  Naval  Staff  has  advised  German  Naval  ' 
Command,  Italy  of  this  view,  with  copy  to  Commanding  Admiral, 
South,  and  has  asked  for  a  statement  of  opinion  and  for  a  re- 
port on  possible  further  requirements. 

2.    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

In  the  evening  of  24  Jul.,  7  destroyers  entered 
Gibraltar  from  the  Atlantic,   Between  midnight  of  24  Jul.  and  ' 
1030  on  25  Jul.,  2  landing  boats,  2  minesweepers,  5  guard  boats, 
2  tugs,  1  corvette  and  1  cable-layer  entered  the  port  from  the 
Mediterranean, 

No  ship  movements  were  observed  in  the  Uestern  Mediterranean. 
The  first  photographic  reconnaissance  made  for  some  time,  of 
Algiers,  did  not  reveal  any  great  number  of  ships.  Nor  was 
there  anything  surprising  in  the  number  of  ships  at  Bougie, 
Jijelli,  Philippeville  and  Bone.   In  Bizerta  there  were  about 


-333-  CONFIDENTIAL 


CONFIDENTIAL 
25  Jul.  1943 
Sunday 

50  large  and  medium  freighters,  according  to  an  Intelligence 
report,  7  damaged  ships  put  in  to- Algiers  and  several  others 
arrived  at  Bizerta  and  Tunis.  Submarines  were  reported  on 
the  afternoon  of  24  Jula,  east  of  Maddalena  and  northeast  of 
Porto  Vecchio  and,  on  25  Jul.,  south  of  Cape  Vaticano,  south- 
west of  Maddalena  and  west  of  Elba, 

No  sighting  reports  were  received  from  the  Eastern  Mediter- 
ranean, 

An  Intelligence  report  gives  Crete  as  well  as  Sardinia  and 
Corsica  as  an  objective  of  the  next  operations.  An  important 
envoy  carrying  Canadian  and  colored  troops  was  said  to  be 
ready  to  leave  from  Western  Morocco  for  the  Mediterranean. 
It  was  also  stated  that  the  Duke  of  Windsor  as  well  as  French, 
British  and  American  Generals  arrived  at  Gibraltar  by  air  on 
20  Jul.  and  continued  their  flight  towards  the  Mediterranean 
on  21  Jul0 

3.  Own  Situation  in  Other  Parts  of  the  Mediterranean, 
Naval  Transport  Situation: 

It  is  additionally  reported  as  of  13  Jul.,  that 
2  tank-barges  were  beached  near  Mehehrolo  due  to  an  es'WBy  air 
attack.   Three  corvettes,  fast  escort  vessel  SG  "10"  and  1 
motor  minesweeper  were  engaged  in  the  escort  service.  One 
steamer  from  Bastia  entered  Leghorn.  No  reports  have  been' 
received  on  the  Sardinia  traffic.   In  the  Sicilian  traffic, 
the  steamer  VTMINALE  (8,756  BRT),  in  tow,  and  2  other  steamers 
left  Messina  for  Naples  on  the  evening  of  24  Jul.  At  0300 
on  25  Jul.,  the  VTMINALE  was  sunk  by  an  enemy  submarine 9   12 
miles  south  of  Cape  Vaticano.   The  two  other  steamers  con- 
tinued their  voyage.  The  steamer  TIVOLI  and  the  motor-ship 
ALFIERI  did  not  leave  Milazzo.   The  tanker  ANCONA.,  which  had 
put  out  from  Leghorn  to  Naples  turned  back  because  of  the 
enemy  situation* 

POMMERN  and  BRANDENBURG  entered  Port  Vendres  after  completing 
the  mine  operations  Hans  I  A  up  to  D.   Thus  all  the  mine  opera- 
tions so  far  scheduled  off  the  southern  coast  of  France  have 
been  carried  out0 

4.  Area  of  Naval  Group  South: 

Aegean: 



At  2000  on  24  Jul.  an  enemy  submarine  was  reported 


-334-  CONFIDENTIAL 


* 


CONFIDENTIAL 

25  Jul.  1943 
Sunday 

50  miles  southeast  of  Piraeus. 

At  2330  on  24  Jul.,  the  troop  convoy  RE  ALLESSANDRO  received 
submarine  alarm  60  miles  west  of  Rhodos  due  to  a  location. 
Depth  charges  dropped  by  an  escorting  torpedo "boat  were  in- 
effective. The  convoy  entered  Rhodes  at  0550,  At  noon  of 
24  Jul,,  enemy  planes  attacked  the  airfields  at  Kalamata  and 
Messini.  At  0215  on  25  Jul.,  two  aerial  torpedoes  were  fired 
unsuccessfully  against  the  Italian  steamer  BUNCINTORO,  40 
miles  west-northwest  of  Rhodes « 

The  small  shipping  traffic  in  the  Salonika  area  has  been  re- 
sumed.  Four  hundred  vessels  have  so  far  been  checked  in  the 
Course  of  control  operations  in  the  sea  area  between  the 
north  coast  of  Ewoia  and  the  mainland. 

Naval  Staff  has  confidentially  informed  Naval  Group,  South 
that  Armed  Forces  High  Command  has  expressly  sanctioned  con- 
tinuation of  the  Navy's  efforts  to  gain  a  foothold,  by  methods 
of  cooperation,  in  the  area  of  Italian  Naval  Command,  Korea, 
while  awaiting  a  definite  settlement  of  the  command  problem 
in  the  southeast  area.  Efforts  to  extend  the  command  functions 
will  be  continued. 

Black  Sea: 

Enemy  Situation: 

According  to  radio  intelligence,  a  submarine  was 
30  miles  south  of  Sevastopol  during  the  night  of  24  Jul,  and 
96  miles  southwest  of  Sevastopol  on  the  morning  of  25  Jul, 
During  the  night  of  23  Jul.,  enemy  planes  were  observed  enter- 
ing the  area  of  the  Danube  estuary  and  laying  mines. 

Own  Situation: 

Our  naval  forces  were  not  sent  out  on  offensive 
operations  during  the  night  of  24  Jul,  because  of  the  bad 
weather.   In  the  night  of  25  Jul,  the  bombardment  the  enemy 
front  on  the  Mius  will  be  repeated  by  naval "artillery  lighters 
MAX  "ln-"3"  and  by  motor  minesweeper  R  "56".  Submarine  U  "19" 
left  Constantza  for  operations.  Submarine  U  "20"  is  due  in  on 

26  Jul,  The  Italian  midget  submarines  CB  "1"  and  "2"  are  en 
route  from  Sulina  to  Sevastopol,  One  of  the  two  escort  sub- 
marine chasers  that  ran  aground  has  been  refloated  without  dam- 
age. The  tanker  0SSAG  convoy  has  arrived  at  Constantza,  Other- 
wise, escort,  transport  and  ferry  traffic  was  carried  out  as 
scheduled  and  without  any  particular  incidents, 

VIII.  Situation -in  East 'Asia: 
Nothing  to  report* 

-335-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

The  new  Situation  in  Italy; 

Naval  Attache,  Rome  has  reported  details  of  the  circumstances 
of  Mussolini's  resignation  on  25  Jul3  The  Naval  Attache  has 
had  a  conversation  with  Admiral  Riccardi,  who  anticipates  a 
change  in  the  command  of  the  Navy  by  separation  of  the  posi- 
tions of"  Under  Secretary  of  State  and  Chief,  Naval  Staff 
x>rhich"had  so  far  been  combined  in  the  person  of  Admiral  Ric- 
cardi,  German  Naval  Command,  Italy  has  confirmed  to  the 
Naval  Attache  that  the  new  government  has  ordered  the  Italian 
Naval  Staff  to  continue  their  war  functions  on  the  same  basis 
of  close  cooperation  with  German  Naval  Command  as  heretofore. 
For  copy  of  the  Naval  Attache's  report  as  per  l/Skl  20961/43 
Gkdos.  see  War  Diary,  Part  C,  Vol,  XIV* 

Naval  Liaison  Officer  attached  to  Italian  Commander,  Submarines 
Bordeaux,  who  is  at  present  in  Rome,  reported  at  1125: 

"The  expected  elimination  of  the  Duce  and  the  Party  was  ac- 
complished amid  violent  demonstrations  against  the  former 
government.  Esteem  for  the  Armed  Forces  is  still  so  high 
that  Grossi  had  to  be  rescued  from  an  enthusiastic  crowd  by 
an  emergency  squad.   Isolated  outbursts  against  Germany  were 
shouted  down.  However,  it  is  strongly  anticipated  that  this 
is  a  transitional  attitude  in  the  hope  of  obtaining  favorable 
peace  terms. 

A  list  of  the  nev;  cabinet  is  to  appear  at  noon  today." 

A  further  report  at  1900  states: 

"The  trend  springing  from  the  overthrow  of  the  government  is 
quickly  becoming-  pronouncedly  anti-German.  The  name  of  Ad- 
miral de  Courten,  former  Naval  Attache,  Berlin,  is  mentioned 
as  probable  Minister  for  the  Navy," 

Both  reports  have  been  forwarded  to  Fuehrer  Headquarters  for 
Chief,  Naval  Staff. 

It  is  still,  in  general,  too  soon  to  conjecture  as  to  -what 
actual  effects  the  events  of  25  Jul.  1943  will  have  on  the 
future  course  of  the  war.  The  first  authoritative  enemy 
statement  available,  made  by  Cordell  Hull,  calls,  as  before 
for  unconditional  surrender.  It  remains  to  be  seen  in  what 
form  Churchill,  who  has  announced  that  he  will  speak,  will 
bring  pressure  on  the  new  government  in  Rome.  Nor  can  cal- 
culations be  made  of  the  difficulties  of  internal  polities 
that  will  ensue  when  the  first  "intoxication  of  liberation" 


-336-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

has  worn  off. 

In  view  of  the  new  situation,  Armed  Forces  High  Command 
issued' the  following  directive  to  Commanding  General,  Armed 
Forces,  South  at  0310: 

"Reports  on  the  political  changes  in  Italy  necessitate  im- 
mediate action  as  follows: 

1,  Cancellation  of  further  troop  transfers  to  Sicily,, 

2,  Preparations  for  the  evacuation  of  German  troops 
from  the  islands  of  Sicily,  Sardinia  and  Corsica,  if  necessary, 
abandoning  all  heavy  equipment  which,  in  such  case,  would  have 
to  be  destroyed e 

3,  Concentration  of  16th  and  26th  Tank  Divisions, 
including  the  remainder  of  29th  Armored  Division  in  their 
quartering  areas  and  cancellation  of  all  movements  to  the 
south  a 

4«    Alerting  of  3rd  Armored  Division  which  will  be 
reinforced  by  the  parts  of  26th  Tank  Division  unloaded  in  the 
vicinity.  The  remaining  parts  of  26th  Tank  Division  which 
are  still  en  route  will  be  unloaded  in  the  area  of  3rd  Armored 
Division  and  will  be  attached  thereto, 

5.  Unobstrusive  call-up  of  emergency  units  and  prepara- 
tion for  occupation  of  important  traffic  junctions, 

6,  Preparations  for  taking  over  all  the  air  defense 

in  the  Italian  area  and  for  taking  back  as  much  German  supplied 
anti-aircraft  equipment  as  possible a 

7#    Correspondive  preparatory  measures  by  2nd  Air  Force 
and  intensified  reconnaissance  in  the  Tyrrhenian  and  Ionion 
Seas* 

The  air  transport  space  of  11th  Air  Corps  now  in  Italy  is  to 
be  transferred  as  fast  as  possible  to  11th  Air  Corps  in  South- 
ern France.  Effective  immediately,  orders  for  the  2nd  Air 
Force  will  be" issued  only  through  Commanding  General,  Arned 
Forces,  South. 

Si    Protection  of  supply-bases  in  northern  Italy, 

9.    Alerting,  assembly 'and  protection  of  all  German 
service  establishments  in  Rome. 


-337-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

10,  Commanding  General,  Armed  Forces  South,  will 
approach  the  King  of  Italy  and  Badoglio  as  soon  as  possible 
in  order  to  clarify  the  position  as  to  further  cooperation, 

11.  No  orders  are  to  be  transmitted  037-  telephone, 
even  in  code.  Orders  will  be  delivered  only  by  couriers, 
whose  written  instructions  will  be  coded  or  by  cyphered  tele- 
print  and  coded  radiogram." 

For  teletype  as  per  l/Skl  2096/43  Gkdos,  Chef,  see  War  Diary 
Part  C,  Vol.  XIV- 

Furthermore,  all  service  orders  referring  to  events  in  Italy  ■ 
are  to  be  transmitted  through  Commanding  General,  Armed  Forces, 
South  0 

At  1850,  from  Fuehrer  Headquarters,  Chief,  Naval  Staff,  Opera- 
tions Division  forwarded  the  following  directive  from  Chief, 
Naval  Staff: 

I.  1.    The  Fuehrer  plans  to  defend  Italy. 

2.  Since  the  naval  forces  scheduled  to  be  called  up 
have  not  yet  crossed  the  frontier,  they  will  be  provisionally 
concentrated  in  the  Toulon  area  in  order  to  use  them  for  oc- 
cupying Toulon  and  the  Riviera  coast. 

3.  Vessels  becoming  ready  for  action  in  the  Marseille- 
Toulon  area  will  be  held  there  from  now  on. 

II.  1.    The  possibility  of  German  occupation  of  harbors 
on  Balkan  west  coast  including  the  Adriatic,  must  be  antici- 
pated,  It  is  planned  to  make  available  personnel  from  the 
Channel  coast  area.   The  relative  decision  by  Commander  in 
Chief,  Navy  will  follow. 

2.    Naval  Group  South  and  Commanding  Admiral,  Aegean 
are  to  be  informed  and  asked  to  report  their  requirements. 
Preparations  are  to  be  made,  for  the  time  being,  without  any 
contact  with  the  Italians, 

The  necessary  measures  have  been  ordered  by  Naval  Staff,  Quar- 
termaster Division,  Organization  and  Mobilisation  Branch-  For 
Copy  of  the  relative  orders  Ski  Qu  A  II  2104  and  2106/43  Gkdos„ 
Chefs,  see  War  Diary  Part  C  X,  and  of  Ski  Qu'A  II  2109.43 
Gkdos.  Chefs,  see  War  Diary  Part  C,  Vol.  XIV. 

Conference  on  the  Situation  with  Chief,  of  Staff,  Naval  Staff: 

-338-  CONFIDENTIAL 


t 


CONFIDENTIAL 
26  Jul.  1943  

I,    Chief,  Bureau  of  Naval  Armament,  Naval  Ordnance  Di- 
vision requested  instructions  in  regard  to  armament  and  equip- 
ment deliveries  to  Italy.  In  accordance  with  the  opinion  of 
Armed  Forces  High  Command,  all  steps  calculated  to  increase 
the  unrest  in "Italy  must  be  avoided.  Nothing  should  be  done 
precipitately.  Chief  of  Staff,  Naval  Staff  therefore  agreed 
that  current  supplies  should  not  be  discontinued,  especially 
since  traffic  congestion  makes  actual  delivery  practically 
impossible  during  the  present  unsettled  and  critical  situation. 
For  the  rest,  special  cases  must  be  handled  according  to  cir- 
cumstances, 

II0   In  accordance  with  a  directive  from  Armed  Forces  High 
Command,  Chief,  Naval  S-^aff,  Naval  Communications  Division  was 
instructed  to  issue  an  order  on  communications  traffic  with 
Italy, 

III,   The  dispute  between  the  Navy  and  the  Air  Force  con- 
cerning the  2  cm,  anti-aircraft  ammunition  is  still  unsettled,, 
Whereas  the  Navy  refused  the  offer  to  take  ever  one  million 
rounds  in  two  installments  of  500,000  each  in  Jul.  and  Aug, 
Chief,  Air  Force  General  Staff  has  now  reduced  his  offer  still 
further  stating  that  the  one  million  rounds  could  be  delivered 
in  four  installmeafca  up  to  Oct,  Chief  of  Staff,  Naval  Staff 
ordered  that  a  personal  teleprint  be  sent  to-  Chief,  Air  Force 
General  Staff  referiug  to  Commander  in  Chief,  Navy's  confer- 
ence with  the  Fuehrer  on  this  matter  of  ammunition. 

Special  Items : 

I,    A  shipment  of  300  of  the  1254  UMB-mines  allotted  to  * 
German  Naval  Command  Italy  was  dispatched  by  sea  on  18  Jul, 
The  present  whereabouts  of  the  shipment  cannot  be  established. 
Traffic  through  the  Brenner  is  at  present  so  congested  that 
it  will  be  impossible  to  forward  the  remaining  954  mines  with- 
in the  foreseeable  future.  Naval  Staff  has  therefore  decided  - 
in  view  of  the  present  mine  shortage  -  to  ship  408  mines  to 
Toulon  and  send  the  remaining  546  mines  to  Group  South  for 
Admiral  Aegean,  The  same  will  be  done  with  the  300  mines 
already  dispatched  if  they  have  not  yet  crossed  the  Brenner 
frontier  or  can  still  be  directed  to  another  destination. 
Corresponding  orders  have  be  n  issued  to  Group  West,  Group 
South,  German  Naval  Command  Italy 'and  Bureau  of  Naval  Arma- 
ment, Underwater  Obstacles  Branch, 

II„   In  regard  to  the  directive  of  Armed  Forces  High  Command, 
Supply  and  Transportation  Office  of  the  Armed  Forces  Overseas 
concerning  the  transfer  of  the  bulk  of  the  Greek  supply  trans- 
port to  the  Black  Sea  -  Dardanelles  traffic,  the  Mediterranean 
Representative  of  the  Reich  Commissioner  of  Ilaritime  Shipping, 

-339-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

has  stated  that  the  agreement  with  the  Reich  Commissioner 
(for  Maritime  Shipping)  mentioned  in  the  said  directive  was 
based  on  a  misunderstandingo   The  Mediterranean  Representative 
contends  that,  under  present  war  conditions,  the  traffic  areas 
Adriatic  to  the  Aegean,  Inner  Aegean,  and  Varna/Burgas  to 
Aegean  must  each  be  handled  independently  as  the  danger  of 
being  cut  off  by  disturbances  on  the  Corinth  Canal  or  the 
Dardanelles  may  become  acute  any  time.  The  Mediterranean 
Representative  therefore  feels  it  his  duty  to  see  that,  in 
^cich  shipping  area,  the  ships  are  distributed  in  such  a  way 
as  to  be  able  to  carry  en  their  tasks  even  if  they  are  cut 
off.  The  Kediterrar.     espresentative  therefore  demands  that 
4  more  ships  for  9^000  BRT  be  transferred  from  the  Inner  Aegean 
routes  to  the  Adriatic  -  Aegean  route.  For  copy  as  per  tele- 
type 1/Skl  20671/43  Crkdos  see  War  Diary  Part  C  Vol-  XI. 

Referring  to  this  suggestion  of  the  Mediterranean  Represen- 
tative of  the  Reich  Commissioner  of  Maritime  Shipping,  Naval 
Staff  advised  Armed  Forces  High  Command,  Operations  Staff, 
Supply  and  Transportation  Office  of  the  Armed  Forces  Overseas  * 
and  Operations  Division  as  well  as  Quartermaster  Division  that, 
on  the  basis  of  the  current  assessment  of  the  situation,  a  con- 
centration of  available  shipping  space  for  the  anticipated 
tasks  in  the  Aegean  and  in  the  Black  Soa  seems  to  be  the  only 
possible  solution*  For  copy  of  the  teletype  l/Skl  20959/43 
Gkdos.  see  in  War  Diary  Part  C,  Vol  XI, 

III.   The  Foreign  Office  has  forwarded  a  telegram  from  the  Ger- 

n  Legation  at  Lisbon  dated  24  Jul,,  stating  that  the  U.S. 
Military  Attache  at  Lisbon  has  made  mention  of  a  very  impor- 
tant landing  operation  -which  is  to  be  achieved  at  all  costs,  - 
and  will  take  place  within  the  next  few  weeks  against  France, 
Belgium,  the  Netherlands,  and  Norway,  On  the  same  subject, 
the  German  Legation  at  Sofia  forwarded  on  24  Jul,  a  report  from 
the  Bulgarian  Minister  at  Lisbon  dated  22  Jul.,  stating  that,  * 
according  to  information  from  the  Italian  Intelligence  Service, 
the  Russians  have  made  strong  representations  to  London  and 
Washington  demanding  the  immediate  opening  of  a  second  front 
on  the  continent  as  the  landing  in  Sicily  had  not  satisfied 
the  Russians.  On  these  grounds  it  is  said  to  have  been  resolved 
to  use  every  means  available  to  the  British  and  the  Americans 
in  an  effort  to  land  troops  in  Belgium  and  France  at  the  end 
of  Jul.  or  beginning  of  August.  The  same  source. reports  that 
numerous  landing  troops  are  concentrated  in  England,  including 
40,000  parachutists.   Besides  the  main  operation  against  France 
and  Belgium,  a  second  landing  is  said  to  be  planned  against 
Norway. 


-340-  ONFIDENTLIL 


CONFIDENTIAL 
26  Jul.  1943 


IV,   Naval  Attache,  Istanbul  reports  as  of  16  Jul.  on  the 
military  preparations  of  the  Allies  in  the  Near  East.   The 
Naval  Attache  is  of  the  opinion  that  the  enemy  will  not  coranit 
himself  in  the  Eastern  Mediterranean  until  the  development  of 
the  campaign  in  Sicily  becomes  clearer,  especially  since  he 
must  count  on  the  possibility  of  having  to  bring  up  his  forces 
and  vessels  in  the  east  to  support  it.  For  copy  of  the  report 
as  per  l/Skl  22045/43  geheim,  see  War  Diary  Part  C,  Vol,  XIV. 

Situation ■ on  26  Jul*   1943: 

Ia    War  in  Foreign  Waters: 

1.  •   Enemy  Situation: 

Cairo,  Cape  Town  and  Bombay  harbors  reported  on 
11  Jul.  that  the  repair  situation  was  unchanged  but  that  heavy 
strain  is  anticipated.  At  Haifa,  short  repairs  can  now  be 
handled,  but  this  will  not  be  possible  at  Ilombassa  until  the 
end  of  July  at  the  earliest. 

Cairo  informed  Bombay,  Basra  and  London  on  9  Jul,  that  rail- 
road capacity  from  the  Persian  Gulf  will  soon  be  completely 
taken  up  by  Middle  East  requirements.   Freight  traffic  from 
India  to  Turkey 'via  the  Persian  Gulf  will  have  to  be  tempor- 
arily suspended. 

2©    Own  Situation: 

Naval  Staff,  Operations  Division  has  forwarded  to 
the  Japanese  Naval  Attache,  Berlin  a  request  that  new  orders 
be  issued  to  the  Japanese  submarine  FLIEDER  for  her  voyage  in 
the  north  Atlantic,  in  modification  of  the  previous  plans  and 
taking  account  of  the  increased  risk  to  be  faced.  For  copy 
of  the  relative  letter  l/Skl  I  opa  2098/43  Gkdos.  Chefs  see 
War  Diary  Part  C,  Vol.  I. 

All  German  ships  in  foreign  waters  have  been  informed  on  the 
enemy  situation  by  radiogram  1756 « 

No  reports  have  come  in  from  our  ships . 

II.   Situation  West  Area: 

1.    Enemy  Situation: 

Thirty-two  planes  were  detected,  chiefly  over  the 
outer  Bay  of  Biscay.  Radio  Intelligence  also  picked  up  at  1912 

-341-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

and  2019  respectively,  reports  from  British  vessels  on  one 
of  our  contact  planes  and  on  an  attack  by  our  planes  on  the 
convoy  KUJGLE  in  CG  4218,  as  well  as  a  report  at  2043  from  a 
British  ship  on  a  contact  plane  near  a  convoy  in  CG  7433. 

British  ships' were  located  between  1043  and  midnight  in'AL 
6610  and  5463,  BF14,  1730/1810,  1570  and  1580,  BE  9820,  GH 
43/46  and  AL  6640, 

At  1125,  our  air  reconnaissance  sighted  in  BF  7274  apparently 
the  sane  five  destroyers  on  a  course  215°  that  were  reported 
in  the  forenoon  'of  25  Jul.  in  BF  7221  in  the  sane  area.  In 
addition  at  1910,  in  CG  1878,  a  convoy  of  55' steamers  of  up  - 
to  22,000  BRT  with  1  cruiser  and  4  corvettes,  on  course  150^, 
and  at-  2030,  a  convoy  of  40  steamers  with  15  escort  vessels 
in  CF  6992  on  course  330°  were  sighted  and  reported0 

In  the  Channel  our  air  reconnaissnace  at  1305  in  BF  3328  ob- 
served 8  motor  minesweepers  sailing  in  double  line  ahead  on 
a  west  to  northwest :rly  coursec  Group  West  thinks  it  not  un- 
likely that  they  were  clearing  mines  in  our  barrages. "  A 
fighter  attack  was  not  possible  due  to  lack  of  forces* 

Off  Le  Havre,  between  0252  and  0425,  targets  were  located  and 
fired  on  by  our  batteries  without  observation  of  results, 

2.    Own  Situation; 

Atlantic  Coast: 

Altogether  seven  ELM/J-mines'were  cleared  off  the 
Gironde,  La  Pallice  and  near  St.  Nazaire,  The  JAGUAR  moved 
from  Bayonne  to  Rcyan  and  PT  boats  S  "124"  and  "134"  moved  from 
La  Pallice  to  Bordeaux. 

Channel  Coast: 


By  day  and  during  the  night,  heavy,  dull  explosions 
between  Dieppe  and  Cherbourg  were  distinctly  heard.   Their 
origin  has  not  been  traced. "  They  might  be  connected  with 
clearance  of  enemy  barrages. 

On  the  night  of  26  Jul.,  9  boats  of  4th  Motor  Minesweeper  Flo- 
tilla were  sent  out  on  clearance  work  northwest  of  Cherbourg. 
For  the  brief  report  on  the  loss  of  PT  boat  S  "77"  see  tele- 
type 0418. 

No  other  events  of  importance  were  reported. 

-342-  PNFIPEriTL'vL 


CONFIDENTIAL 
26  Jul.  1943 

III.  North  Sea.  Norway.  Northern  Waters: 

North  Sea: 

The  Ems-Elbe  convoy  was  unsuccessfully  attacked  with 
bombs  by  16  enemy  planes  30  miles   southwest  of  Heligoland. 
Mine  exploding  ship  "176"   shot  down   one  enemy  plane  14  miles 
south  of  Heligoland. 

Eight  ELM/J-mines  were  cleared  in  the  convoy  routes  north  of    '" 
Tershelling  up  to  southwest  of  Heligoland. 

At  least  four  big  U.S.   bomber  formations  were  detected  over 
the  North  Sea  between  1000  and  1342.     Enemy  planes  were  repor- 
ted flying  towards  Hanover.     Naval  anti-aircraft  artillery 
shot  down  1  plane  at  Norderney. 

Norway,    Northern  Waters: 

1.  Enemy  Situation: 

Eighteen  planes  were  detected  operating  over  the 
North  Sear  A  submarine  periscope  was  sighted  on  25  Jul.  near 
Soerrey  in  Gallef jord.  According  to  radio  intelligence,  the 
Cape  Greben  signal  station  reported  to  Yugor  Strait  on  25  Jul. 
the  sinking  of  a  minesweeper.  This  was  apparently  the  result 
of  an  action  by  one  of  our  submarines, 

2.  Own  Situation:  . 

Destroyer  Z  "29"  anchored- in  the  roads  off  Trond- 
heim  at  2330  on  25  Jul. 

Submarine  U  "703"  took  aboard  the  captain  of  the  Russian  steam- 
er DEKABBIST  from  Hope  Island.  The  steamer  was  torpedoed  on  . 
4  Nov,  1942.  -Three  members  of  the  steamer's  crew,  including 
a  woman,  are  still  on  the  island. 

On  25  Jul«,  in  her  assigned  operational  area  AT  72,  submarine 
U  "625"  was  attacked  by  a  flying  boat  and  went  back  to  Ham- 
merfest  to  take  on  torpedoes. 

Destroyer  Z  "28"  has  forwarded  a  brief,  report  on  the  air  attack 
on  Trondhcim  on  24  Jul.  For  copy  see  T/P  1225.  The  boat  was 
seriously  endangered  by  two  tugs  lying  alongside  which  had 
been  set  on  fire  by  the  bombs,  and  had  to  flood  her  ammuni- 
tion chambers.   20  men  of  the  crew  were  wounded.  The  boat  will 
probably  be  able  to  sail  with  the  starboard  engine  by  31  Jul, 


-343-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

The  degaussing  system  is  out  of  action  as  the  cables  were 
destroyed  by  fire . 

Fifty  ships  were  escorted  to  the  north  and  28  ships  to  the 
south.   Thirteen  ships  were  held  up  in  the  Arctic  Coast 
Area  due  to  lack  of  escort. 

IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea:  ■ 

1.  Enemy  Situation: 

In  the  Gulf  of  Finland  at  0343,  a  submarine  was 
reported  on  a  westerly  course  east  of  Lavansaari„  During  the 
night  of  25  Jul..,  air  activity  was  very  strong  throughout  the 
coastal  area.  Bombing  and  strafing  caused  no  dannge.  Other- 
wise no  new  information  has'  been  received, 

2.  Own  Situation:"" 

Twenty-two  vessels  and  3  mincsweeping  planes  were  ' 
employed  on  channel  sweeping  in  the.  area  of  Commanding  Admiral, 
Defenses  Baltic.  One  ELM/J  mine  was  cleared  off  Korsov,  Heavy 
losses  are  reported  to  have  been  caused  in  the  Howaldt  dock- 
yards during  the  daylight  attack  on  Kiel  on  25  Jul.  Consider- 
able damage  was  also  done  to  the  dockyards  at  Hamburg.  The 
accommodation  ship  GENERAL . ARTIGAS  burnt  out  and  capsized. 
Submarine  base-ship  TOLLER  ORT  and  accommodation  ship  DOED^M 
received  direct  hits.   The  Higher  Naval  Construction  Office 
was  heavily  damaged.   The  Armed  Forces  High  Command,  War 
Economy  Inspectorate  was  put  completely  out  of  action* 

One  mine  was  cleared  near  Arcona.  Altogether  3  leave-trans- 
ports and  4  troop-transports  were  under  way  in  the  Baltic  Sea 
area.  Besides  this,  the  3CHLESIEN  was  escorted  to  Libau,  the 
Nuebnberg  and  1  tanker  f rom ' Swinemuende  to  the  east  and  1 
tanker  from  Memel  to  Pillau0 

Acter  completing  the  work  in  the  Irben  Narrows  1st  Jfctcr 
Minesweeper  Flotilla  is  transferring  to  Talinn.   The  Peterhof 
and  Korkuli  Batteries  were  hit  during  a  sharp  exchange  of 
fire  with  the  enemy  and  suffered  minor  damage  and  casualties. 

Anti-submarine  net  and  barrage  patrol  was  carried  out  by  34 
vessels. 

V.    Merchant  Shipping: 

Naval  Staff,  Naval  Intelligence  Division  reports  on 

-344-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

the  negotiations  between  the  USSR  and  Japan  concerning  two 
Russian  merchant  ships  being  held  in  Japanese  ports.   For 
copy  as  per.  l/Skl  20099/43  Gkdos.  see  War  Diary  Part  C,  Vol, 
XI. 

Naval  Staff,  Operations  Division  has  inf ormed  the  Foreign 
Office  pointing  out  that  this  case  again  shows  the  prudence 
with  which  the  Japanese  handle  their  relations  with  the  Soviet 
Union. 


VI.  Submarine  Warfare: 
Nothing  to  report. 

VII.  Aerial  Warfare: 

British  Isles  and  Vicinity: 

3rd  Air  Force  had  263  planes  in  operation  in  the  West 
area  and  14  planes  in  the  Mediterranean,, 

The  convoy  of  55  steamers  observed  at  1910  in  CG  1878  was 
attacked  by  Air  Commander,  Atlantic  Coast.  One  steamer  of 
8  -  10,000  BRT  was  sunk  and. 2  others  were  damaged. 

During  the  night  of  25  Jul.,  Hull  was  attacked  by  47  bombers,, 
Four  planes  failed  to  return.  Ten  Me  410-planes  were  sent  out 
against  London  on  the  night  of  26  Jul.  They  attacked  at  2300 
and  2345  with  1000  kg  bombs  and  returned  without  losses. 

During  the  day,  the  enemy  made  a  large  number  of ' air  raids 0 
Five  airfields,  as  well  as  traffic  installations,  were  at- 
tacked in  the  areas  of  Belgium  and  northern  France  and  our 
defences  brought  down  4  of  the  attacking  pianos  certainly  and 
2  more  probably.  Besides  this,  1  Wellington  was  shot  down  by 
a  Ju  "88",  200  miles  northwest  of  Cape  Ortegal. 

Three  groups  of  50  -  80  planes  coming  from  the  North  Sea  flew 
into  Reich  territory  to  Hannover  and  Hamburg/Wessermuonde. 
All  three  places  were  attacked  and  considerable  damage  was  done 
at  Hamburg  and' Hannover.  Twenty-nine  of  the  attacking  planes 
were  shot  down, '20  of  them  by  fighters.   For  details,  see 
Daily  Situation,, 

In  the  night  of  26  Jul.,  60  enemy  planes  entered  the  German- 
controlled  areas.   Fifteen  of  them  made  nuisp.nce  flights  into 
the  coastal, area  of  northern  Germany.  Three  bombs  were  dropped 
in  the  Hamburg  area.  One  more  enemy  plane  was  shot  down  in 
the  West  Area,, 

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CONFIDENTIAL 
26  Jul.  1943 

Mediterranean  Theatre: 

Our  Air' Force  carried  out  reconnaissance  in  the  Central 
Mediterranean,  especially  of  the  Sicilian  area.  -  In  attacks 
on  shipping  targets  on  the  north  coast  of  Sicily,  6  enemy  ves- 
sels were  hit  and  a  heavy  cruiser  received  two  direct  hits. 

During  the  night  of  25  Jul.,  Air  -Commander,  Long-Range  Bombers 
sent  out  74  bombers  against  ship  targets  at  La  Valettac  Ac- 
cording to  preliminary  reports,  three  ships  were  hit  cofta inly 
and  two  probably. 

•In  the  same  night,  the  small  enemy  forces  attacked  Naples « 

Eastern  Fro  at : 

( 

Seventy— eight  planes  were  shot  down  oh  the  Army  front 
on  23  Jul.,  101  on  24  Jul.  and  82  on  25  Jul0 

vTII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

1,    Enemy  Landing  in  Sicily: 

Situation  on  land: 

From  the  early  morning  hours  onward,  the  enemy 
made  strong  attacks  against  the  northern  flank  of  15th  Ar- 
mored Division,  which,  in  spite  of  a  counter-attack,  was 
forced  to  withdraw  to  the  line  Castel  di  Fusa  -  Pettino  - 
Castel  di  Lucia,,.  The  enemy  is  also  attacking  again  in  the 
area  east  of'Gangi,  On  the  rest  of  the  front  the  situation 
is  unchanged. 

On  the  basis "of  the  departure  of  a  50-ship  convoy  (see  War 
Diary  25  Jul.)  from  Palermo  to  the  east,  reported  on  25  Jul. 
Commanding  Admiral,  South  anticipates  a  landing  on  the  north 
coast  of  Sicilye  29th  Armored  Division  has  assumed  command 
in  the  northern  sector.   Considerable  losses  of  motor  vehicles 
were  caused  again  yesterday  by  continued  strong  enemy  air  ac- 
tivity. The  Italian  High  Command  reports  that  officers  and 
men  are  being  affected  by  clever  propaganda  leaflets  dropped 
by  enemy -planes.   The  "Aosta"  and  "Assietta"-  Divisions  have 
lost  half  their  strength. 

Commanding  Admiral,  South  reports  that  paras  1,  4,  5  ~nd  9  of 
the  directive  of  Armed  Forces  High  Command  (see  page  508  above 
and  following  pages)  were  already  underway  or  had  just  been 
ordered  when  the  directive  was  received. 


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CONFIDENTIAL 
26  Jul.  1943 

Situation  at  Sea: 

The  number  of  ships  in  Sicilian  ports  is  substan- 
tially unchanged.  According  to  an  Italian  report,  4  big 
ships,  including  a  probable  battleship,  were  off  Catania  at 
1300.  The  50  ships  reported  east  of  Palermo  on  25  Jul.  have 
not  been  detected  again.  Reports  of  the  sighting  of  enemy 
formations  in  the  northern  outlet  of  the  Straits  of  Messina 
in  the  night  of  25  Jul,  have  not  been  confirmed.  They  were 
probably  our  own  naval  landing  craft.  Reports  on  the  ship- 
ping losses  caused  by  the  enemy  air  attack  on  Messina  on  25 
Jul.  have  been  corrected  to  the  effect  that  one  Italian  tor- 
pedo boat  was  only  damaged  and  was  able  to  return  to  Naples 
under  her  own  power.   Furthermore  the  corvette  reported  sunk 
was  only  damaged  and  was  beached. 

No  other  important  reports  have  been  received, 

2.  Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

One  DIBO-class  cruiser  entered  Gibraltar  from  the 
Atlantic  and  1  corvette- and  3  gun  boats  arrived  from  the  Med- 
iterranean. On  the  afternoon  of  25  Jul.,  a  destroyer  was 
reported  65  miles  northwest  of  Algiers  and  40  eastbound  and 
6  small  freighters  were  40.  miles-  north  of  Philippeville,  No 
ship  movements  were  observed  in  the  Western  Mediterranean  on 
26  Jul.  There  were  8  merchantmen  with  4  destroyers  sailing 
east,  80  miles  north  of  Tripoli  at  1429* 

Submarines  were  reported  30  miles  west  of  ^jaccio  and  7  miles 
south  of  Spezia. 

Reconnaissance  off  the  Cyrenaica  coast  and  off  the  western 
Peloponnese  yielded  no  sightings,, 

According  to  an  Intelligence  report  of  23  Jul.  from  Tangiers, 
French  divisions  have  been  standing  by  since  21  Jul.  in  the 
area  between  Algiers  and  Oran  to  embark  for  operations  against 
Corsica  the  start  of  which  depends  on  the  progress  of  the 
Sicilian  campaign* 

3.  Own  Situation  in  Other  Parts  of  the  Mediterranean 
Sea  Transport  Situation: 

The  steamer  VIMINALE  was  sunk  on  the  night  of  24 
Jul;  not  by  a  submarine  but  by  enemy  PT  boats.   On  the  same 
day,  the  river  motor  minesweeper  FR  "70"  was  sunk  by  an  enemy 
submarine  west  of  Elba.  . 

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CONFIDENTIAL 
26  Jul.  1943 

Torpedo  boat  TA  "11"  (foreign  built),  2  anti-aircraft  cor- 
vettes, 3  submarine  chasers,  3  motor  minesweepers,  1  harbor 
motor  minesweeper,  1  Italian  naval  landing  craft,  2  corvettes 
and  2  Italian  torpedo  boats  were  engaged  in  the  escort  service. 
At  1235,  a  convoy  was  unsuccessfully  attacked  by  7  enemy  planes 
north-northeast  of  Porto  Vecchio.  Otherwise,  the  escort  and 
supply  traffic  was  carried  out  without  incident. 

Under  the  protection  of  the  three  remaining  boats  of  12th  Motor 
Minesweeper. Flotilla,  a  steamer  left  Marseille  for  Genoa  on 
the  evening  of  25  Jul. 

The  BRANDENBURG  is  moving  from  Port  Vendres  to  Toulon  and  the 
POMMERN  to  La  Ciotat,  On  24  Jul.,  3  freight -barges  left 
Toulon  for  Savona  followed  on  25  Jul.,  by  2  tanker-barges « 

Commanding  Admiral,  South  reports  that  Armed  Forces,  High  Com~ 
mand  has  refused  to  dispatch  parts -of  the '  Brandenburg  Division 
for  operations  on  the  North  African  coast,  and  that  the  troop 
situation  in  the  Italian  area  is  so  strained  that  even  minor 
detachments  for  other  purposes  cannot  be  made,  (See  teletype 
0115). 

4,    Area  Naval  Group  South; 

Aegean : 

On  25  Jul,  an  enemy  submarine  was  sighted  east 
of  Milos  and  south  of  Syra,  At  0307  on  26  Jul.,  an  Italian 
destroyer  was  unsuccessfully  attacked  by  enemy  planes  south- 
east of  Leros.  No  other  important  events  have  been  reported. 

Black  Sea: 

Enemy  Situation: 

Nothing  special  to  report. 

Own  Situation: 

In  the  night  of  25  Jul.,  the.  3rd  bombardment  of 
the  enemy  front  on  the  Mius  River  was  carried  out  according 
to  plan  with  observed  results  and  without  counter-action,  A 
fourth  bombardment  is  planned  for  the  night  of  26  Jul, 

Submarine  U  "24"  left  Constantza  for  the  operational  area* 
The  Italian  midget  submarines'  "CB  1"  and  "2"  put  in  to  Sevas- 
topol,  PT  boats  S  "40",  "42",  "47"  are  to  move  from  Ivanhoe 


-348-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul,,  1943 

to  Constant  za*.  Two  motor  minesweepers  are  on  their  way  from 
Constant za  to  the  Bosphorus, 

A  supolementary  report  on  the  submarine  attack  on  the  Theodosia 
Yalta  convoy  states  that  it  is  not  unlikely  that  the  enemy 
submarine  was  damaged  by  depth  charges. 

During  the  attack  by  15  enemy  planes  against  the  152nd  Anapa- 
transport  on  25  Jul.,  10  of  the  attacking  planes  were  shot 
down  by  fighters. 

In  Istanbul,  a  magnetic  explosive  charge  attached  to  the  steam- 
er TISBE  one  meter  below  the  water  line  was  rendered  harmless 
shortly  before  she  was  due  to  sail*  The  ship  is  therefore 
being  temporarily  held  by  the  Turkish  authorities  in  order 
to  carry  out  an  investigation.  Other  convoy,  supply  and  ferry 
traffic  was  carried  out  according  to  schedule  and  without  in- 
cident, 

IX.   Situation  in  East  Asia: 

Military  Attache,  Tokyo  reports  as  of  IS  Jul.,  that 
the  Japanese  South  Sea  defensive  is  costing  heavily  in  losses 
of  men,  shipping,  aud  especially  planes.   The  Japanese  Naval  Staff 
believes  however,  that  the  enemy  offensive  to  the  northwest 
along  the  Solomon  Islands  will  come  to  a  standstill  at  the 
end  of  the  outer  defenses,  i.e,  near  Bougainville,  The  danger 
point  in  the  Japanese  South  Sea  defenses  is  of  eastern  New 
Guinea,  They  will  try  to  hold  the  Bay  of  Lae  area. 

It  is  believed  that  the  concentrated  British/Chinese  attack 
on  Burma,  expected  to  take  place  in  the  fall,  can  be  warded 
off o  A  British  landing  in  the  Andaman  Islands  and  in  Northern 
Malaya  would  be  more  serious.   In  any  case,  Burma  and  the  area 
south  of  it  also  call  for  strong  Japanese  defense  forces. 

In  regard  to  China,  it  is  thought  that  Chungking  could  be 
taken  with  ten  divisions  but  the  capture  of  this  major  city 
would  not  necessarily  mean  the  downfall  of  Chiangkaishek, 
The  dispatch  of  new  Japanese  forces  to  China  is  not,  however, 
advisable  in  view  of  the  possible  American/Russian  threat  to 
Japan  from  Russian  territory  in  the  Far  East.   An  early  U.S. 
attack  on  Kiska  is  considered  likely.  U.S. /Russian  relations 
are  said  to  be  good,  Russia  treatment  of  Japan  is  almost  im-r 
pudent.   The  Japanese  General  Staff  is  therefore  preparing 
for  a  possible  preventive  attack  against  Russia's  Far  Eastern  * 
territory.  About  30  divisions,  including  three  tank  divisions, 
are  available  for  that  purpose  as  well  as  superior  air  forces. 


-349-  CONFIDENTIAL 


CONFIDENTIAL 
26  Jul.  1943 

Political  leaders  and  the  Navy  are  trying  to  avoid  a  clash 
with  Russia,  In  view  of  the  war  economy  situation  and  the 
lack  of  transport  space,  the  decision  to  attack  rea/uires 
serious  consideration* 

The  Japanese  General  Staff  regards  the  European  war  situa- 
tion as  serious  both  on  the  Russian  south  front  and  in  Sicily 
but  was  not  clear  as  to  German  operat  .onal  plans  on  either 
front.   This  made  it  difficult  to  assess  the  European  situa- 
tion and  to  reach  a  decision  in  regard  to  East  Asia.   It 
would  therefore  be  appreciated  if  the  Military  Attache  could 
be  brought  up  to  date  by  the  Chief  of  the  German  General 
Staff.  Furthermore,  a  desire  was  expressed  for  a  closer  form 
of  cooperation  between  the  Japanese  and  German  High  Commands. 
Personal  conferences  would  be  desirable  if  German  planes  could 
be  used  as  the  Japanese  long-range  plane  had  been  lost.   It 
was  also  recommended  that  the  desirability  of  reducing  Russian 
exports  to  America  be  set  before  the  Japanese  political  leaders 
and  especially  the  Navy.  This  question,  however,. .  would  re- 
quire the  most  delicate  handling.   Furthermore,  a  German  hint 
to  the  Japanese  political  leaders  in  regard  to  the  elimination 
of  anti-Laval  diplomats  was  suggested,, 


27  Jul.  1943 

The  New  Situation  in  Italy: 

According  to  reports  from  Rome,  a  new  Italian  cabinet  has  been 

formed  which  does  not  include  the  outspoken  Fascists.  Guarig- 

lia,  now  Ambassador  at  Ankara  and  formerly  Ambassador  to  the  \ 

Vatican,  has  been  appointed  Foreign  Minister.  The  Minister 

of  the  Marine  Navy  is  de  Courten. 

The  Military  authorities  have  assumed  control  of  public  order. 
The  Fascist  Militia  has  joined  the  armed  forces  as  the  "Vol- 
untary Militia  for  the  Security  of  the  State."  Grand  Admiral 
di  Revel  has  been  appointed  as  the  new  President  of  the  Ital- 
ian Senate. 

An  official  Italian  commentary,  forwarded  by  DNB  from  Rome, 
states  that  the  change  of  government  is  neither  a  revolution 
nor  a  coup  d'  etat  but  a  crisis  which  has  been  solved  by  con- 
stitutional means.  Italian  foreign  policy  will  remain  un- 
altered. The  war  will  be  continued,  Italy  will  keep  her 
word.  Events  within  the  Fascist  Grand  Council  were  of  an 
exclusively  domestic  nature. 


-350-  CONFIDENTIAL 


D 


•) 


.  ..  ...  CONFIDENTIAL 

27  Jul.  1943 

Radio  Rome  also  declared  in  its  English  language  broadcast, 
that  the  war  would  go  on  so  long  as  the  enemy  stood  on  Italy's 
threshold.  After  the  failure  of  the  Fascist  government  only  a 
military  government  could  ensure  the  concentration  of  the 
country's  forces. 

The  surprisingly  quick  reorganization  of  the  Italian  press  and 
the  changes  in  the  editorial  staffs  indicate  that  the  politic- 
al swing  over  had  been  carefully  prepared. 

Referring  to  the  situation  in  Italy,  Churchill  stated  in  the 
House  of  Commons  that  it  was  Germany's  most  natural  desire  to 
make  Italy  a  theater  of  war.   If  the  Germans  should  get  their 
way,  the  war  against  Italy  weald  have' to  be  carried  on  with 
the  utmost  vigor  from  north  and  south, from  sea  and  from  air 
and  by  amphibious  landings „  So 'far  the  Italian  Government  had 
made  no  approach  to  the  British,  Reuter's  summary  of  the  speech 
continues  "We  would  be  foolish  if  we  were  to  refuse  to  come  to 
a  general  agreement  with  the  Italian  nation.  Wo  certainly  do 
not  aspire  to  reduce  Italian  life  to  a  state  of  chaos  and  anarchy 
and  then  to  have  no  authority  with  which  to  negotiate.   The  heavy- 
task  of  supplying  garrisons  and  police  forces  for  the  country 
would  fall  upon  us.  We  do  not  want  to  maneuver  ourselves  in- 
to the  kind  of  position  into  which  the  Germans  have  fallen  be- 
cause of  their  grave  mistakes.   In  the  case  of  Italy,  I  would 
not  want  to  take  the  road  which  might  lead  to  executions  and 
concentration  camps. 

-We  should  leave  the  Italians  to  stew  in  their  own  juice  for  a 
while  and  feed  the  fire  to  the  utmost  in  order  to  speed  up  the 
process  until  we  obtain  from  their  government,  or  from  any  one 
endowed  with  the  necessary  authority,  the  indispensable  require- 
ments for  the  prosecution  of  the  war  against  our  main  enemy, 
which  is  not  Italy  but  Germany. 

It-  is  in  the  interests  of  both  Italy  and  the  Allies,  that  the 
Italian  capitulation  should  be  complete  and  not  piecemeal.  In 
all  these  matters  we  are  acting  in  close  understanding  with 
the  United  States,:  Our  Russian  friends  will  also  be  kept  reg- 
ularly posted.   The  armies  of  England  and  America  are  working 
as  if  they  were  the  army  of  a  single  nation.  The  two  govern- 
ments are  in  constant  contact, " 

,  Thus  the  British  attitude  also  has  been  defined.  They 
too  are  asking  for  unconditional  surrender  and  already 
call 'openly  for  cancellation  of  the  alliance  with  Ger- 
many. 'This  Anglo-American  intransigence  works,  at  the 
moment,  to  the  interests  of  Germany,  At  least  it  gives 


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CONFIDENTIAL 
27  Jul.  1943 

us  some  time  which  can  be  used  for  military  purposes. 
Apparently  the  enemy  plans  to  increase  the  internal 
political  pressure  in  Italy  so  strongly  that  all  their 
aims  will  be  achieved  by  this  means .  It  will  call  for 
great  firmness  and  ability  on  the  part  of  the  new  lead- 
ers if  their  policy  is  to  be  successful  in  the  face  of 
the  desperate  desire  for  peace  of  a  bitterly  disappointed 
people.  In  view  of  the  difficulty  of  the  task,  it  would 
be  unwise  for  Germany  to  count  with  any  certainty  on  its 
final  solution* 

Naval  Attach^,  Rome  continues  his  report  on  his  meeting  with 
Riccardi  on  26  Jul* : 

"Supplement  to  Naval  Attache,  Rome  teleprint  Gkdos,  2077/43  of 
26  Jul.  Ziff .  5.  as  oer  l/skl  20961/43  Gkdos  in  War  Diary  Part 
C,  Vol.  XIV. 

According  to  Riccardi,  a  basic  political  and  military  decision 
on  the  use  of  the  battleships  for  combat  operations  has  been 
made.  An  operational  prerequisite,  however,  is  that  the  battle- 
shins  should  have  a  chance  of  getting  within  firing  range  of 
the  enemy  before  being  put  out  of  action  by  the  enemy  air  force. 
That  is  why  the  battleships  were  not  used  in  Sicily,  Fuel 
supplies  are  sufficient  only  for  one  operation.  Riccardi  is 
expecting  the' next  enemy  attack  to  be  directed  against  Sardinia 
in  which  case,  battleships  will  be  sent  out  from  La  Spezia,  In 
case  of  an  attack  against  southern  Italy,  the  battleships  DUILIO 
and  DORIA,  now  being  made  ready  at  Taranto,  will  be  used*  They 
will  be  operational  by  the  end  of  Jul.  The  personnel  of  the 
DUILIO  and  of  the  DORIA  was  reduced  some  time  ago  because  of 
the  shortage  of  personnel  for  the  Tunisia-transport  escort 
forces.  Air  reconnaissance  is  desirable  for  the  successful 
commitment  of  the  battleships,  but  they  will  be  used  even  with- 
out adequate  air  reconnaissance.  Although  this  would  be  an 
act  of  desperation,  it  would  be  done  in  order  to  uphold  the 
honor  of  the  fleet  to  posterity.   Italy  is  proud  of  its  Navy 
which  has  fought  well  whereever  it  has  been  used.   This  was' 
proved  by  the  high  losses  in  cruisers,  torpedo  boat  chasers^ 
and  submarines.  Seventy-two  submarines  have  been  lost.  Naval 
Attache's  comment:  Riccardi' s  opinion  that  Sardinia  will  prob- 
ably be  the  enemy's  next  target  conincides  with  my  own  views 
based  both  on  the  enemy's  situation  to  date  and  on  the  suit- 
ability of  the  Sardinian  air' bases  for  operations  against  the 
north  Italian  industrial  area,  and  especially  on  the  fact  that 
Sardinials  location  blocks  the  enemy's  west-east  route  in  case 
of  operations  against  the  Balkans." 


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CONFIDENTIAL 
27  Jul.  1943 

For  teleprint  as  per  l/Skl  2114/43  Gkdos.  Chefs,  see  War  Diary 
Part  C  Vole  XIV. 

The  directive  of  Chief,  Naval  Staff,  Naval  Communications  Di- 
vision concerning  communications  traffic  -with  Italy  as  per 
l/Skl  21057/43  Gkdos  is  attached  to  War  Diary  Part  C  Vol.  XIV. 

As  a  precautionary  preparation  for  taking  over  the  defense  of 
that  sector  of  the  south  coast  of  France  now  occupied  by  the 
Italians,  Naval  Staff,  Quartermaster  Division,  Organization 
and  Mobilization  Branch  is  planning  the  following  organization 
(from  "G:".re".a:i  personnel): 

1«>    Admiral  Commanding  South  Coast  of  France:  Rank* 
Commanding  General;  Wever  with  staff 0  Base  to  be  selected* 

2.  The  present  Admiral  Commanding  South  Coast  of 
France  to  become  Naval  Shore  Commander,  Languedoc  based  on 
Montpellier.  Area,  provisionally  as  before. 

3.  German  Naval  Command,  Toulon  to  be  changed  to 
Naval  Shore  Commander,  Provence.   Artillery  Commander  with 
Naval  Artillery  Battalions  "612",  "681"  and  parts:.  o£,."6l6" 
will  be  attached  to  Naval  Shore  Commander,  Provence."  The 
necessary  port  captains  and  port  commandants  will  be  provided 
by  the  Naval  Control  Service. 

4<»    6th  Patrol  Flotilla  will  be  expanded  into  a  Patrol 
Force  as  soon  as  the  material  becomes  available. 

5.    The  Senior  Communications  Officer  will  be  attached 
to  Admiral  Commanding  South  Coast  of  France.  Personnel  to  be 
drawn  from  "Gisela." 

For  copy  as  per  Ski  Qu  A  II  2110/43  Gkdos.  Chefs,  see  in  War 
Diary  Part  C,  Vol.  XIV. 

Conference  on  the  Situation  with  Chief  of  Staff,  Naval  Staff. 

Chief.  Naval  Staff.  Quartermaster  Division.  Organization  and 
Mobilization  Branch  reported  on  organizational  measures  and 
plans  as  per  notes- in  War  Diary  26  Jul. 

No  other  special  reports  or  decisions. 

Special  Items: 

Among  the  "Material  on  the  Enemy  Situation"  received,  there  is 


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CONFIDENTIAL 
27  Jul.  1943  ~~ 

a  report  by  the  Italian  Naval  Attache,  Nanking  which  states 
that  the  enemy  had  planned  to  make  a  landing  in  Calabria  sim- 
ultaneously with  the  landing  in  Sicily  because  that  this  had 
not  been  done  as  the  latter  was  started  prematurely.  A  large 
number  of  minesweeping  vessels  were  said  to' have  been  pre- 
pared for  the  larding  in  the  Gulf  of  Taranto, 

According  to  a  report  from  diplomatic  sources  in  Berne,  the 
Anglo-Americans  are  planning  an  action  against  the  Straits  of 
Otranto  for  the  purpose  of  a  thrust  against  the  Dalmatian 
coast „ 

It  is  further  reported  that  sabotage  operations  by  enemy  para-' 
chutists  on  the  south  shore  of  Lake  Geneva  and'  on  the  Italian 
shore  of  Lake  Maggiore  near  the  Swiss  frontier,  in  connection 
with  the  opening  of  the  attack  on  the  Italian  mainland,  are 
expected  at  any  minute. 

Situation  on  27  Jul.  1943 

I.  War  in  Foreign  Waters; 

1.  Enemy  Situation: 

Nothing  special  to  report. 

2.  Own  Situations 

Naval  Attache,    Tokyo  reports  that  the  AQUILA  III 
is   expected  to  be  ready  to   leave  on  10  Aug.   and,    in  view  of 
the  uncertainty  of  the  Italian  situation  requests   instructions 
as  to  whether  the  AQUILA  boats1    schedule  should  be  carried  out 
as  planned  and  whether  they  should  carry  courier-mail, 

_ 

Naval   S.aff  has  closely  examined  the  Italian  suggestions  in 
regard  to  fuel  supply  in  the  south  Atlantic,   as  forwarded 
by  Naval  Attache,   Tokyo.      The  investigation  has  revealed 
that  refuelling  in  the  south  Atlantic  is  out  of  the  question 

since  it  is  uneconomical  and  too  dangerous  for  the  supply   

ship.  Naval  Attache,  Tokyo  has  been  advised  accordingly. 
For  copy  as  -per  l/Skl  I  opa  2060/43  Gkdo's.  Chefs,  see  War 
Diary  Part  C,   Vol.   I. 

II.  Situation  V/est  Area; 
1.         Enemy  Situation; 

Twenty-nine  planes  were  observed  over  the  outer 


-354-  CONFIDENTIAL 


CONFIDENTIAL 
2?  Jul.  1943 

Bay  of  Biscay.   British  units  were  located,  at  1302,    in  CG- 
4760/4840  and  at  2030,  off  Oporto  and  off  Lisbon.  At  0733, 
our  air  reconnaissance  detected  the  southbound  convoy  "Mangl"* 
Radio  Intelligence  intercepted  several  reports  from  this  con- 
voy on  our  contact  planes  and  on  attacks,, 

2.    f-wn  Situation: 

Atlantic  Coast: 

One  ELM/J  mine  was  cleared  off  Breste   5th  Torpedo 
boat  Flotilla  left  La  Pallice  at  1300  with  the  M0EVE,  the 
K0ND0R  and  with  torpedo  boat  T  "19"  and  joined  the  JAGUAR  and 
submarines  U  "46l"  and  "462"  off  the  Gironde  in  order  to  es- 
cort submarines  ur:  to  &°Westa  Group  West  has  f orwarded ' the 
relative  operational  order  to  5th  Torpedo  Beat  Flotilla. 
For  the  teletype  as  per' l/Skl  2093/43  Gkdos.  Chefs,  see  War 
Diary  Part  C,  Vol,  II  bc 

The  dispersal  point  for  the  submarines  is  BF  49^1  at  &<,5°  West, 
Paragraph  of  the  operational  order  contains  instructions  on 
"Conduct  towards  the  enemy",  oh  which  Naval  Staff,  Operations 
Division  has  nothing  to  remark. 

Channel  Coast: 

4th  Motor  Minesweeper  Flotilla  on  mine  clearance 
work  northeast  of  Cherbourg,  had  an  engagement  with  5  enemy 
motor  gunboats  at  0350  following  an  enemy  air  attack.  One 
enemy  motor  gunboat  was  sunk  certainly  and  another  probably. 
Two  of  our  motor  minesweepers  were  heavily  hit  and  the  other 
boats  suffered  slight  damage.  Casualties  were  light.  For 
brief  report,  see  teletype  l655« 

At  1130,  Port  Command  "655"  near  Zeebruegge  was  damaged  by 
enemy  air  attack.   Two  ammunition  bunkers  and  one  crew  dug- 
out were  destroyed.  " 

Three  ELM/A-mines  and  one  AT-mine  "were  cleared  off  Ostend. 
Group  West  also  reports  that  the "mole-barrage  at  Zeebruegge 
has  been  laid  and  is  operational^ 

IIIe  North  Sea.  Norway,  Northern  Waters; 

North  Sea: 

Four  ELM/J -mines  were  cleared  north  of  the  East  Frisian 
Islands.  At  noon,  isolated  enemy  reconnaissance  planes  flew 


-355-  CONFIDENTIAL 


CCNFIDENTIaL 
27  Jul.  1943 

over  the  coastal  area  of  the  North  Sea.   Escort  and  patrol 
duties  were  carried  out  according' to  plan  and  without  incident 
in  the  r.rea  of  Commanding  Admiral,  Defenses  North, 

Commanding  Admiral,  Naval  Establishments,  Hamburg  has  reported 
on  the  industrial  losses  caused  by  the  enemy  air  attack  in  the 
Hamburg  area.  Dock  capacity  has  been  reduced  by  about  30/6  due 
to  lack  of  electric  power "and  the  difficulty  of  transporting 
the  workers  to  their  jobs.   The  dockyards  are  at  present  not 
in  working  condition.  According  to  preliminary  reports  so  far 
received,- 69  industrial  and  armament  factories,  including  the 
shipyards,  12  military  installations,  14  hospitals,  as  well 
as  th-e  gas,  water  and  power  supplies  were  destroyed  or  put 
out  of  order.  Transportation  is  largely  out  of  action.   Th? 
number  of  killed,  missing  and  wounded  exceeds  10,000  and  the 
number  of  those  rendered  homeless  is  more  than  230,000.  The 
Deutsche  "Werft  dockyard  at  Finkenwerder  is  undamaged  and  in" 
full  working  order,  For  further  details,  see  teletype  2030. 

Norwa;/ ,  North  e  rn  V/a t  e  r s : 

L.    1:::~-   Situr^tirr.: 

Radio  Intelligence  detected  strong  air  activity 
over  the  Shetlands;  19  planes  were  in  operation. 

2.    Own  Situation; 

Destroyer  Z  "23"  arrived  in  Narvik  on  the  afternoon 
of  26  Jul.  Twenty-five  ships  were  escorted  to  the  north  and 
40  to  the  south.  Ten  ships  were  held  up  in  the  area  of  Admiral 
--.rctic  Coast  due  to  lack  of  esccrt.   No  other  important  reports 
have  been  received. 

IV.   Skagerrak,  Baltic  Sea  Entrances.  Baltic  Sea: 

1.    Enemy  Situation; 

During  the  night  of  26  Jul.,  very  active  tug  and 
barge  traffic  was  observed  in  Kronstadt  Bay  and  there  was 
strong  enemy  air  activity  along  the  Carelian  coast  on  the  even- 
ing of  26  Jul.  The  coastal  area  was  shelled  by  artillery  from. 
Kronstadt "and  0  ranienbaum  during  the  morning  and  afternoon 
of  27  Jul.  During  the  noon  hours  the  bc::ibardment  of  this  area 
v.'as  interspersed  with  bombing  and  strafing  attacks  from  planes. 
There  was  practically  no  change  to  be  observed  among  the  ships 
in  the"harbors  of  Lavansaari  and  Seiskari.  Cn- the  evening  cf 
26  Jul.  there  was  a  convoy  of  8  tugs,  3  barges,  12  motorboats, 
2  guard  boats  and  2  PT  boats  west  of  Kronstadt  on  a  westerly 

-356-  CONFIDENTIAL 


CONFIDENTIAL 
27  Jul.  1943 

course.  Air  activity  was  also  strong  at  Tuetters.  At  0535 
our  formations  southeast  of  the  island  were  bombed  and  strafed 
by  several  plane s0  According  to  Finnish  reports,  PT  boats  made 
a  thrust  north  of  Someri  in  the  night  of  26  Jul.,  but  sheered 
off  eastwards  behind  a  smoke  screen  when  fired  upon  by  the 
Someri  Battery,  In  addit  ion  a  bombing  attack  north  of  Nargoen, 
presumably  against  the  net  barrage,  was  observed  about  mid- 
night 6 

2 .    Own  Situation : 

In  the  area  of  Commanding  Admiral,  Defences  Bal- 
tic 21  vessels  and  4  mine sweeping  planes  wore  engaged  in  check 
sweeping.   One  ground  mine  was  cleared  south  of  Skagen. 

Another  ground  mine  was  cleared  in  the  Fehmarn  belt.  Five 
troop  transports  and  2  steamers  as  well  as  the  target  ship 
ZAEHRINGEN  were  escorted  in  the  Baltic  Sea  areac 

Large  minesweeper  "12"  was  sent  out  to  clear  the  western 
part  of  the  Irben  Strait.  Four  Russian  mines  wore  cleared 
north  of  Someri 'including  one  which  was  recofered  together 
with  the  anchor.  An  enemy  submarine  was  attacked  by  the 
watch  group  of  24th  Landing  Flotilla  northeast  of  Revel- 
stein  with  probably  successful  results. 

V.    Submarine  warfare: 

U  "415"  sighted  a  convoy  in  EE  7745  on  24  Jul.  and  re- 
ported "defensive  action  based  on  locations  and  continuous  air 
attack.  On  25  Jul.  in  the  Freetown  area,  a  convoy  of  20  ships 
was  detected  on  course  300°  in  ET  2586» ,  The  submarine  was  pre- 
maturely detected  by  a  destroyer  and  was  prevented  from  attack- 
ing.  On  6  Jul.  ,  the  same  submarine  sighted  a  fast  convoy  off 
the  approach  to  Freetown n 

U  "516"  supplied  3  "Monsoon"  submarines,  in  place  of  Tanker 
"160"  which  is  out  of  action, 

U  "509"  failed  to  meet  the  tanker  and,  has  not  reported  since. 

In  FR  1517,  U-"172"  sank  the  steamer  PORT  CHITCHIN  (6,000  BRT> 
on  course  25°,  carrying  ore  and  iron  from  Rio»  Also,  a  tanker 
of  6000  BRT  was  sunk  in  the  waters  of  Curacao.  U  "466"  suffered 
casualties  in  a  successful  defense  against  enemy  planes  in 
the  area  EP  48,  and  had  to  turn  back.  IN  DM  2925,  U  "134"  was 
hit  by  bombs  from  a  fast  land  plane  and  had  to  put  back  for  re- 
pairs. 

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CONFIDENTIAL 
27  Jul.  1943 

VI,   Aerial  Warfare: 

British  Isles  and  Vicinity; 

The  southbound  convoy  of  55  ships  was  attacked  by  forces 
of  Air  Commander;  Atlantic  Coast,  One  ship  of  6  -  8,000  BRT 
and  another  of  6,000  BRT' were  sunk  and  one  of  5,000  BRT  was 
damaged,,  During  the  day,  enemy  airforces  made  numerous  in- 
cursions.  Isolated  reconnaissance  planes  were  over  north- 
western Germany  and  the  Ruhr  District  during  the  noon  hours. 
In  the  Holland  area  slight  material  damage  was  caused  in  an 
attack  on  the  airfield  at  Woensdrecht,  In  Belgium  and  North 
France  railway  stations  and  (as  already  reported)  a  Port  Com- 
mand were  attack  near  Zeabruegge,  Also,  the  Triqueville  air- 
field and  the  German  Air  Force  Station  Shipol  in  the  Amster- 
dam area  were  attacked.   Five  enemy  planes  were  shot  down  in 
counter  actions  against  these  attacks. 

During  the  night  of  27  Jul.,  between  0045  and  0225,  at  least 
500  planes  made  an  extremely  heavy  attack  on  Hamburg  at  first 
from  an  altitude  of  3  -  4,000  meters  and  later  from  7,000 
meters.  In  the  districts  west  of  the  ulster  and  in  the  port 
areas  of  Hamburg  and  Wilhelmsburg,  vast  conflagrations  and 
many  big  fires  were  caused*    The  extent  of  the  destruction 
and  the  casualties  cannot  yet  be  estimated.   No  reports  have 
been  received  on  the  performance  of  our  anti-aircraft  guns. 
Night  fighters  shot  down  12  enemy  planes© 

In  the  same  night  nuisance  raids  were  made  by  small  forces  in 
the  Ruhr  District  and  the  occupied  western  territories.  A  trans- 
port train  was  attaked  in  the  Dinant  area. 

Mediterranean  Theatre: 

Our  Air  Force  carried  out  reconnaissance  of  the  Sicilian 
and  Malta  areas  and  photographic  reconnaissance  of  Benghazi, 
Since  our  attack  on  26  Jul.,  5  damaged  freighters  for  34,600 
BRT  have  been  observed  at  Syracuse. 

During  the  day,  the  enemy  attacked  air  fields  in  southern 
Italy,  The  Italian  -ir  Force  Station  at  Capua  was  heavily 
damaged.  Two  of  our  own  planes  were  put  out  of  action.   No 
enemy  air  activity  was  reported  on  the  night  of  27  Jul„ 

Eastern  Front: 

Mo  reports  have  been  received. 

."  -358-  CONFIDENTIAL 


CONFIDENTIAL 
27  Jul.  1943 

VII.  Warfare  in  the  Mediterranean  and  Black  Sea: 

1,    Enemy  Landing  in  Sicily: 

Situation  on  Land: 

The  enemy  has so  far  failed  to  follow  up  our  forma- 
tions in  the  North  Coast  sector  which  arc  withdrawing  accord- 
ing to  plan.  Strong  enemy  attacks  were  launched  on  the  even- 
ing of  26  Jul.  in  the  area  east  of  Gangi.  "On  the  rest  of  the 
front,  the  enemy  kept  up  harassing  gunfire.  The  enemy  Air 
Force  made  continuous  attacks  in  waves   on  our  supply  traffic* 

Situation  at  Sea: 

On  the  north  coast  of  Sicily 3   the  enemy  is  now  •• 
also  using  bjie  harbor  of  Termini.  Tvro  coastal  freighters  were 
observed  there  on  the  afternoon  of- 26  Jul.  At  the  same  time 
there  were  8  PT  boats,  1  submarine,  2  minesweepers,  9  motor 
minesweepers  and  1  coastal  freighter  in  Palermo.  There  were 
no  enemy  vessels  in  the  harbors  of  Trapani,  Marsala,  Mazzala 
and  Sciacca  at  that  time.  No  important  changes  were  observed 
among  the  ships  in  the  other  Sicilian  harbors,,  At  0710,  in 
Valstta  1  battleship^  1  aircraft  carrier, -5  cruisers,  several 
destroyers  and  5  merchantmen  were  sighted  and,  at  Marsa  Scirocco, 
2  battleships,  &   destroyers,  1  LST,  1  small  freighter  and  1 
tanker. 

Four  boats  of  3rd  PT  Boat  Flotilla  left  Crotone  in  the  after- 
noon for  operations  off  the  east  coast  of  Sicily <> 

German  "Naval  Command,  Italy  reports  that  seaward  guns  at  Tar- 
anto,  Naples  and  Brindisi  are  adequate  in  number  but  the  de- 
fense of  the  smaller  harbors  is  weak*  There  are  no  all-round 
batteries  at  all.  Camouflage  and  light  anti-aircraft  artillery 
are  inadequate.  It  takes  months  to  bring  up  and  instal  guns 
from  other  fronts  because  of  the  confusion  on  the  railroads. 
It  will  probably "not  be  possible  to  take  over  the  Italian  posi- 
tions completely.   In  agreement  with  Commanding  General,  Armed 
Forces,  South,  German  Naval  Command  suggests  that  the  other 
Naval  A  tillery  forces  be  u&ed  as  infantry  for  the  defense  of 
the  main  batteries  so  that  they  may  intervene  immediately  in 
case  the  Italian  battery  crews  collapse^   It  is  stated  that  * 
the  first  requirement  would  be  2  Naval  Artillery  detachments, 
one  for  Taranto  and  one  for  Naples  and  adjacent  harbors.  Good 
infantry  training  and  anti-tank  and  anti-aircraft  artillery 
equipment  are  necessary. 

-359-  CONFIDENTIAL 


CONFIDENTIAL 
27  Jul.  1943 

German  Naval  Command  Italy  further  reports  with  reference  to 
the  relative  directive  of  Naval  Staff,  Operations  Division  1 
(see  War  Diary  21  Jul.),  that  with  the  transfer  of  the  fast 
escort  vessel  SG  "14"  and  the  motor  minesweeper  to  the  Straits 
of  Messina,  and  the  appointment  of  Captain  Kamptz  as  Commander 
Defenses  Messina  Straits,  all  the  protective  measures  that  the 
available  means  permit,  including  these  for  submarines  passing 
the  Straits,  have  been  taken.   Cooperation,  particularly  in 
regard  to  recognition  signals,  has  been  agreed  upon  with  the 
Italian  Admiral.  Relations  have  been  clarified.  Passing  sched- 
ules are  being  fixed.  Motor  minesweeper  escort  is  being  con— 
sideredc 

2.    Enemy  Situation  in  Other  Parts  of  the  Mediterranean: 

Twelve  freighters  and  1  landing  boat  transport  ship 
entered  Gibraltar  from  the  Mediterranean  and  30  freighters  and 
4  tankers  arrived  in  three  groups  from  the  Atlantic*  Ten 
Freighters,  1  tanker  and  4  destroyers  as  well  as  one  DIDO-class 
cruiser  left  for  the  Atlantic, 

No  shipping  traffic  was  observed  in  the  Western  Mediterranean* 
According  to  air  reconnaissance,  there  were  3  freighters  on  a 
westerly  course,  30  miles  northwest  of  Bizerta, 

Submarines  were  detected  west  of  Prepessa  and  northwest  of 
Elba.  On  26  Jul.,  an  eastbound  convoy  of  1  cruiser,  2  de- 
stroyers 'and  8  freighters  was  128  miles  north— northwest  «f 
Benghazi,,  On  27  Jul.,  nr  shipping  traffic  was  observed  in 
the  Eastern  Mediterranean. 

According  to  photographic  reconnaissance,  there  were  1  tanker 
and  6  freighters  as  well  as  isolated  escort  vessels  and  3  LCT 
in  Benghasio 

An  Intelligence  report  states  that  the  loading  of  the  freighters 
with  war  materiels  at  Alexandria  was  completed  on  20  Jul. 
Four  troop  transports  of  the  ETTRICK-type  are  in  the  harbor 
as  well  as  —  allegedly  —  the  battleship  WARSPITE.   Five  di- 
visions are  said  to  be 'ready  for  embarkation  in  the  area  of 
Alexandria  and  Rosetta. 

According  to  an  Italian  Intelligence  report  of  21  Jul.,  there 
is  a  total  of  28  divisions  standing  by  in  the  Tunis  and  Bizerta 
areas  for  the  invasion  of  Sardinia.  Eight  divisions  are  as- 
signed for  the  establishment  of  the  first  bridgehead,.  One  di- 
vision is  to  land  south  of  Cape  Ferrato,  2  divisions  between 
Torre  Murtas  and  Cape  San  Lorenzo  and  other  divi  sions  south 
and  north  of  Cape  Bellauista. 

36C-  CONFIDENTIAL 


•     CONFIDENTIAL 
27  Jul.  1943 

y%         Own  Situation  in  Other  Parts  of  the  Mediterranean. 
Sea  Transport  Situation: 

At  noon  of  26  Jul,,    east  of  Cape  Ferro,   7  enemy- 
planes  attacked  5  infantry  landing  boats  with  only  limited 
success t     On  23  Jul.  a  naval  landing  craft  and  a  Siebel- ferry 
each  shot  up  an  enemy  fighter  bomber  setting  them  on  fire0 

Early  on  26  Jul.  and  again  at  noon  enemy  air  forces  attacked 
Milazzo  while  fighter  bo   bers  also  attacked,  the  ferry  traffic 
and  anti-aircraft  positions  in  the  Straits   of   Iiessina0     On  the 
night  of  26  Jul.,   the  industrial  plants,  at  Naples  were  attacked., 
Ferry  traffic  across  the  Straits  of  Messian  was   carried  out 
according  to  planu 

The   (foreign-built)  torpedo  boat  TA  "11",   2  anti-aircraft 
corvettes,    2  submarine  chasers,    6  motor  minesweepers,   auxil- 
iary motor   minesweepers,    6  Italian  torpedo  boats  and  2  cor- 
vettes were  engaged  on  escort  services      Eight   steamers  and  1 
tanker  were  escorted  in  the  island  traffic,    2  tankers  and  2 
steamers  were  escorted  off  the  west     coast  of  Italy  as  well 
as  1  steamer  from  Marseille  to  Genoa,     The  tanker  ALBERTO 
FASSIO   (2,289  BRT)   en  route  from  Velona  to  Patras  sank  near 
Prevesa  at  C500  on  26  Jul.   following  an  explosion,   probably 
of  a  mine. 

According  to  an  Italian  report  forwarded  by  Commanding   Admiral, 
Aegean,   the  ALBERTO  FASSIO  was  torpedoed  at  0210  on  27  Jul. 
while  eri  route  from  Italy  to  Piraeus  via  Patras « 

4o         Area  Naval  Group  South ; 

Aegean: 

The  convoy  "Samson11  was  unsuccessfully  attacked  by 
four  enemy  planes  at  0735 <>     One  of  the  attacking  planes  was 
probably  shot  down. 

Troop  transports  and  escort  service  were  carried  out  as   sched- 
uled and  without  incident. 

Special  Items: 

Group  South  has  submitted,    as  a  separate  report  an  assessment 
of  the  Situation  from  its  'Jar  Diary  of  21  Jul.      The  report  is   ' 
entered  as  per  l/Skl  2094/43  Gkdos.   Chefs,    in  Ktr  Diary  Part  C, 
Vol,   XIV. 


-361-  CONFIDENTIAL 


CONFIDENTIAL 
27  Jul.  1943 

In  this  report,  Group  South  expresses  the  opinion  that  enemy- 
operations  in  the  eastern  Mediterranean  will  not  begin  until 
the  Sicilian  operation  is  completed.   The  Group  regards  the 
present  defensive  power  of  the  Greek/Aegean  area  so  still  in- 
adequate. Some  protection  is  provided  by the  extensive  mine 
defenses.   Coastal  artillery  defenses  are,  in  comparison,  very 
poor.   Finally,  the  Group  believes  that,  on  the  basis  of  his 
experience  in  Sicily,  the  enemy  now  has  also  Crete  in  mind  as 
a  target  of  attack. 

Black  Sea: 

Enemy  Situation: 

No  reports  have  been  received* 

Own  Situation: 

In  the  night  of  26  Jul,,  the  4th  bombardment  of 
the  enemy  front  on  the  Mius  was  carried  out  according  to  plan. 
The  enemy  put  up  ineffective  counter-fire  but  not  until  after 
the  bombardment, 

A  thrust  by  3  boats  of  11th  PT  Boat  Flotilla  into  the  area, 
west  of  Novorossisk  had  to  be  broken  of f  prematurely  because 
of  bad  weather.   An  operation  by  naval  artillery  lighters  MAL 
ngn  _  ni:Ln  and  motor  minesweeper  R  "30"  with  5  boats  of  1st 
PT  Boat  Flotilla  for  a  special  task  off  Primorsko  -  Akhtari 
under  command  of  Commander  3rd  Motor  minesweeper  Flotilla, 
was' also  broken  off  because  of  the  weather.  Late  in  the  even- 
ing, the  5th  bombardment  of  the  Mius  front  was  likewise  carried 
out  according  to  plan. 

One  mine  was  cleared  by  a  minesweeping  plane'  in  the,  Danube  area,. 

The ' steamer  TIS BE  received  her  sailing  permit  for  the  Black 
Sea, 

Escort,  transport  and  ferry  traffic  was  carried  out  according 
to  plan  and  without  incident, 

VIII,  Situation  East  Asia: 


Apparently  in  compliance  with  a  request,  Naval  Attache, 
Tokyo  has  forwarded  a  statement  by  Admiral  Koyima  to  the  effect, 
that,  although  the  idea  of  a  preventive  war  against  Russia  has 
again  come  into  favor  recently  with  many  Army  officers  the  Gov- 
ernment and  the  Navy  are  trying  to  prevent  it  by  every  possible 
means.  It' would  be  an  inestimable  blessing  not  to  have  to  wage 
such  a  war,  Japan  —  only  with  difficulty  holding  her  Pacific 

-362-  CONFIDENTIAL 


OGIIFIDENTI.iL 
2^  Jul.  1943 

position,  threatened  with  a  major  attack  on  Burma  in  the  fall j 
and  heavily  engaged  in  China  —  was  in  no  position  to  gain  a 
decisive  victory  against  Russia  —  above  all  because  of  her 
still  entirely  inadequate  Air  Force,  Moreover,  it  is  strongly 
felt  that  such  a  war  would  hardly  bring  an3r  relief  for  Germany. 


28  Jul.  1943 

The  Ne.-v  Situation  in  Italy;;  .    ■ 

■'"  ' 
A  clear  picture  of  developments  to  date  is  contained  in  the 
following  report  from  Rome  by  the  German  Liaison  Officer  at- 
tached to  the  Italian  Commander,  Submarines: 

From  personal  impressions  and  from  numerous  conversations  with 
responsible  and  patriotic  Italians,- mostly  officers,  I,  have 
derived  the  following  overall  picture: 

1.  The  situation  is  absolutely  quiet.   Badoglio  is 
firmly  suppressing  all  leftist  tendencies.  Anti-German  ten- 
dencies, instigated  on  the  first  day  probably  mainly  by  Marxists, 
Jews  and  paid  agitators,  have  subsided, 

2,  Mussolini's  resignation  was  the  result  of  the  de- 
cline of  the  Fascist  Party,  which  has  lon^  been  evident,  and 
of  his  own  dwindling  prestige  due  to  his  lack  of  energy  and 
procrastination,  to  which  the  disorder  in  the  wa,v  industries 
is  mainly  attributable.   This  was  strongly  and  personally  con- 
firmed by  the  big  industrialist  Caproni  who  had  constant  deal- 
ings with  Mussolini,  The  complete  decay  of  the  Part  was  dem- 
onstrated in  the  Fascist  Grand- Council  where  most  of  the  leaders 
headed  by  Grandi  and  Farinacci,  turned  against  Mussolini  with 
the  aim  of  forcing  him  into  the  background  and  taking  over 
government?.l  authority  themselves.   They  overlooked  the  fact 
that  the  Party  without  Mussolini  was  nothing  but  a  house  of 
cards.  Mussolini  was  thus  overthrown  by  his  own  oldest  support- 
ers, of  whom  Grandi  is  still  regarded  with " favor  and  respect 

in  military  .circles  while  Farinacci  is  not, 

3«    In  this  situation,  the  only  stable  factor  in  state 
structure  was  naturally  the  King  who  called  upon  Badoglio  be- 
cause he  was  held  in  high  esteem  by  the  Italian  people.  The 
Fascist  Parts'-  has  gone  out  of  the  picture  completely  and  has 
no  noteworthy  supporters  in  military  circles. 

4*    Badoglio  is  displaying  great  energy,  Amongst  of- 
ficers, I  have  noted  two  trends  of  opinion  in  regard  to  his 


-363-  CONFIDENTIAL 


CONFIDENTIAL 
28  Jul.  1943 

ideas  for  prosecution  of  the  war: 

a.  Cne  section  still  believes  in  the  determina- 
tion to  continue  the  fight  to 'the  end  provided  Germany  can  fur- 
nish the  necessary  assistance, 

b,  Another  section  believes  that  the  present 
government  will  try  to  find  an  honorable  way  of  ending  the  war. 
All,  however-,  are  unanimously  agreed  that  Italy  can  never  con- 
sider any  solution  that  might  warrant  an  accusation  of  treach- 
ery. It  is  the  general  opinion  that,  if  the  war  were  ended 
dishonorably' (treacherously),  Italy  would  have  no  hopes  of  ever 
rising  again, 

5o    All  officers  and  patriot ically  minded  Italians  hope 
that  the  Badoglio  government  will  be  accorded  the  same  sup- 
port and  respect  as  the  former  government.   Any  other  treatment 
of  the  Badoglio  government  would  increase  the  danger  of  the 
governments  succumbing  to  the  pacifist  influence  of  the  big 
industries  and  popular  opinion.  It  is  hoped  that  Germany  will 
avoid  the  adoption  of  any  measures  or  attitudes  such  as  to  pro- 
vide the  Badoglio government  with  an  all  too  simple  and  possibly 
not  unwelcome  pretext  for  withdrawing  from  its  obligations  tc 
Germany  with  an  appearance  of  righteousness, 

6,  Most  officers  hope  that  the  same  contact  will  be 
maintained  with  us  as  heretofore,  and  that' cooperation  will 
continue,  A  visit  from  Commander  in  Chief,  I-avy,  after  the 
most  important  Navy  posts  have  been  filled,  would  be  profitable, 

7,  Any  effort  on  Germany's  part  to  reestablish'  Fascism 
would  be  absurd  and  would  promote  anti-militarist  and  marxist 
tendencies  and  eventually  bring  them  into  power.   It  is  in 
Germany [s   interest  to  support  Badoglio  as  perhaps  the  last 
bulwark  against  Bolshevism  and  the  danger  of  Italy's  joining 
our  enemies.   Churchill's  speech  has  already  had  a  very  sober- 
ing effect  in  patriotic  circles  and  has  reacted  to  our  advan- 
tage, 

8,  Admiral  Legnani  has  especially  emphasized  that  the 
German  soldiers  should  not  allow  themselves  to  be  drawn  intc 
unfriendliness  towards  all  Italians  by  the  unfriendliness  of 

a  few  incited  individuals.  He  has  requested  that  a  statement 
be  made  stressing  the  importance  of  a  friendly  attitude  on  the 
part  of  the  German  soldier  at  this  moment. 

The  German  Liaison  Officer  attached  to  Italian  Commander,  Sub- 
marines also  reports: 


-364-  COIIFIDENTIaL 


CONFIDENTIAL 
28  Jul.  1943 

"The  Minister  of  the  Navy  has  just  asked  me  to  call  and  said: 
Please  tell  the  Grand  Admiral  that  it  is  my  urgent  desire  to 
see  him  as  soon  as  possible  in  order  to  go  thoroughly  into  all 
questions  concerning  cur  common  struggle.   It  is  my  desire  tr 
cooperate  closely  with  Germany  in  order  that  things  may,  if 
possible,  go  better  than  before*  Please  give  no  credit  to  all 
the  current  rumors 0  The  Marshal* s  promise  that  the  war  will 
be  continued  is  not  an  empty  phrase,   I  have  lived  long  enough 
in  Germany  to  desire  this  sincerely*" 

After  informing  the  Fuehrer  through  Admiral ,  Fuehrer  Headquarters, 
Commander  in  Chief >  Wavy  replied: 

"The  following  to  be  conveyed  to  the  Italian  Minister  of  the 
Navy:   I  welcome  your  desire  for  an  early  meeting  and  shall  be 
very  glad  of  the  opportunity  to  talk  to  you,   I  would  appreci- 
ate it  if  37-011  would  come  to  Berlin  for  that  purpose,1' 

Conference  or.  the  Situation  with  Chief  of  Staff,  Naval  Staff: 

Nc  special  reports  or  decisions* 

Special  Items: 

I.  The' Intelligence  Service  reports,  from  Spanish  source  in 
Gibraltar,  that  the  landing  in  Sicily  is  not  the  invasion  of 
Europe  and  is  regarded  as  of  secondary  importance.  The  main 
objective  will  rather  be  the  Balkans,  which  will  be  approached 
from  Turkey.  More  than  one  and  a  half  million  men  and  an  enor~ 
mous  quantity  of  war  materiel,  which  is  still  constantly  being 
increased  via  the  Persian  Gulf  and  Trans-Jordan,  are  concentrated 
in  Palestine,  Irak  and  Iran  for  that  purpose.  The  first  target 
would  be  the  Dardanelles  and  Greece  followed  by  an  attack  on 
Bulgaria  and  Roumania  both  by  land  and  from  the  Black  Sea,  with 
the  aim  of  joining  forces  with  Russia. 

Besides  this,  another  major  operation  is  said  to  be  planned  a- 
gainst  France',  for  which  about  1,000,000  men,  now  on  the  North 
African  Coast,  are  to  be  used.  This  operation  is  to  be  pre- 
ceded by  the  conquest  of  Corsica.  It  is  also  said  that  naval 
demonstrations  and  landing  attacks  will  be  made  on  the  Balkan 
coasts  for  a  divisionary  purpose*. 

II.  Naval  Staff,  Naval  Intelligence  Division  has  investigated 
the  effect  of  the  reopening,  by  the  enemy,  of  the  Mediterranean 
route  on" shipping  traffic  in  the  Capetown  area  and  the  South 
Atlantic,   (See  VJar  Diary  24  Jul.)„   For  Copy  as  per  l/Skl 
22520/43  geh.  see  in  'Jar  Diary  Part  D  "Material  on  the  Enemy 
Situation  1943." 

-365-  CONFIDENTIAL 


CONFIDENTIAL 
28  Jul,  1943 

Situation  on  28  Jul.  1943: 

I,  77a r  in  Foreign  'Jaters: 
Nothing  to  report, 

II.  Situation  h'est  Area: 

1.  Energy  Situation: 

Not  less  than  68  planes  were  detected  over  the 
outer  Bay   of  Biscay.  Radio  Intelligence  intercepted,  at  1912, 
a  reoort  from  a  British  convoy  ship  on  two  F.J   200  planes  near 
the  Convoy  "Seaplane"  in  42°33'  N.  At  0330,  a  British  ship 
sent  a  signal  to  Cleethorpes  giving  as  its  position  45°03 '  N 
13°  '••".   At  1444,  the  5th  Torpedo  Brat  Flotilla  reported  an  out- 
ward bound  flying-boat  on  a  northwesterly  course  in  BF  5796, 
Our  air  reconnaissance  reported,  at  1930,  a  northbound  convoy 
of  47  steamers  with  1  destroyer,  5  escort  boats  and  1  auxiliary 
aircraft  carrier  in  CF  3931.  Further  locations  vere  mde  be- 
tween 2235  and  2340  in  CF  8370,  AL  3450  an!  in  BE  8930, 

According  to  an  Intelligence  report,  a  French  ship  of  7,000  BRT" 
was  sunk  between  Dakar  and  Pert  Etienne,  ho  details  were  given, 

2,  Own  Situation: 
Atlantic  Coast: 

One  ELM/J-mine  was  cleared  off  Brest. 

At  2000,  the "JAGUAR,  with  submarine  0  "231",  began  her  return 
from  BF  9149* 

Channel  Coast: 

From  0325  till  0312,  off  Dieppe  gun  carriers  "1", 
"3",  and  "8"  had  a  brush  wit  three  enemy  PT  boats,  all  three 
of  which  were  observed  to  have  been  hit, *  One  of  cur  carriers 
was  hit  several  times  with  little  effect. 

At  1100,  a  strong  enemy  air  attack  was  made  on  Zeebrugge,  The 
gas  works  were  set  on  fire.  The  ccnvo3r  route  off  Ostend  has 
en  temporarily  closed  because  of  mine  danger. 

Special  Items: 

Group  77est  has  submitted  a  report  on  the  monthly 
number  of  mines  required  for  the  plans  already  approved  by  Kaval 
Staff  and  for  newly-arisen  needs,  especially  in  the  Mediter- 
ranean; with  substantiating  details  and  specification  of  types, 

-366-  CONFIDENTIAL 


CGLJFID5NTIAL 
28  Jul.  1943 

In  regard  to  mine  requirements  for  defensive  barrages  in  the 
Channel,  Naval  Staff,  Operations  Division  has  informed  the 
Group' that  the  numbers  so  far  promised  are  r.iaximum  figures 
which,  in  view  of  the  low  stocks  and  the  urgent  demands  for 
all  sea  areas,  can  be  supplied  only  in  accordance  with  the 
actual  amount  required  at  a  given  time.  3o;.:e  other  method  of 
distributing  the  mines  in  accordance  with  the  group's  wishes 
will  be  sought  but  a  difficult  bottleneck  exists  in  regard  to 
UIIB-mines.  An  additional  monthly  delivery  of  400  SliC-mines  is 
not  at  present  possible  as  long  as  the  Mediterranean  and  Aegean 
coastal  defenses  are  on  the  priority  list. 

The  offensive  barrage  mine  requirements  cf  Commander  PT  boats 
will  have  to  be  met  from  his  reserve  stock  which,  at  present, 
still  comprises  about  500  UMj  and  is  constantly  being  refilled. 

In  regard  to  mine  requirements  in  the  Mediterranean,  it  is  not 
possible  for  LSroup  West  to  "have  2000  mines  in  readiness  for  an 
emergency  as  even  Naval  Staff  has  no  reserves  at  its  disposal. 
The  use  of  RMA  mines  for  subsidiary  mine  fields,  as  suggested 
is  no  longer  feasible  as  RM-pro duct ion  ceased  some  time  and 
stocks  are  nearlj'-  exhausted.  For  future  requirements,  UvI-mines 
will  have  to  be  used.  Group  West  will  supervise  the  correspond- 
ing Ill-mine  tests. 

It  is  also  planned  to  use  Lr-I-mines  for  mining  our  own  harbors 
in  case  of  enemy  landings. 

For  reasons  of  security,  new  firing  devices  will  not  be  used 
against  enemy  landings,, 

III,  North  Sea.  Norway,  Northern  Waters : 

North  Sea: 

Two  ELM/J-mines  were  cleared  north  of  Ter shelling. 

At  0319,  patrol  line  Rom  drove  off  an  attack  by   6  enemy  PT  boats. 
No  successes  or  losses  are  reported.  At  0400,  enemy  PT  boats 
were  located  off  the  Hook  though  they  failed  to  contact  line 
Kairo,   B-Group  of  34th  Minesweeper  Flotilla,  on  mine  clearance 
operations,  was  in  continuous  sight  of  PT  boats  20  kilometers 
away.   In  this  case  also,  no  engagement  took  place. 

The  two  patrol  boats  VP  "1210"  and  "1211"  in  cooperation  with 
anti-aircraft  battery  Wesermuende,  shot  down  an  enemy  four- 
engined  bomber  at  0200, 


-367-  CONFIDENTIAL 


nnm  inn 

28  Jul.  1943 

-".it  :r.z  of  27  Jul. ,   ^  er.srrj-  planes  returning   1;  ne 

night   at1     .      an  !  amburg  were   :b served  to  be  shot  \     probably 

':;.-  r.-.v.  1   £.nti-aircraft« 

Fr:  1~    ::'.  23  Jul.,    about    25C  ny  pli  in   several  :':r~£- 

tions,    flew     in  over  t.  ligoland  Bight,  .aa;- oriaa.  1  fc- 

:r  5   ---    3930.     No  targets  (ere  hit,      ...  their 

back,  30,   the  planes    iropped  Jl    ::  .1    explosive    bombs 

:r   Schiemonikoogj   without    causing  ndlitary  iamage. 

n  ay,   Northern  "  at  ers 

1.         Bnemy   Situation: 


- 


Thirteen  ~z2  rved   :  aver  t 

:::,   -.:-.  27  Jul.,  fc  ?i  boats 

re   siaaaed  rr.  a    ;      thwesterly  course  near  rtteroey  light 

.     At    115C    -y.  28   JuX.,   the   British  .::    '345"  was    iiscovered 
by  our  patrol  boat    ;'5301"  camoufl   ; 

island   of  Aspoe  in  the   Bufjord,"  and  raptured  by  an  assault 

ietechment   from  ::.r  boat.     The   MH         3    set  on  fire    and  the    bos- 
deli  \nd  6  were  :r:;:::rr. 

On  27  Jul.,    our  air  reconnaissance   sight  but,    5  kilo— 

meters   east  cf  he  exit      _  -  :rd. 

~r.  23  Jul.   our  air  recormaissanc :    reaaraea    :. :    ~z~5  3   cruisers 
in  AT  7475   :r.   course   9r0.      The  G-roup   thinks    that   they  may  have 
been  wrongly  identified    iestroyersj    at  1102,    1  light   craiser, 
15  smaller  shirs,    ::'        ich   z  were    iestroyers    in<3   the   ether 
cor"  .  rd  boats,  on  a  leasterli  rse   in  ..7  "110; 

at    11":,   3  11?-"-"    cruisers  sailing   southeast   in  Af  7550,   at  ~n/t5. 
1  rently)   cruiser,   2  destroyers,    en  e<  110°  at  a  high 

speed  in  AF  7320.     fhe   ships  shadow       until  1443,     Three 

nes  were   siaaaed  north    cf  the  formatic  1135;   at  1513 .   1 

cruiser,    2  a  yers    en  a  :  erly  course  in  11  ~-H>   at 

175C,    1  battle   cruiser,   1  air::  ift   carrier,   1  heavy  cruiser  in 
.1  7350  and  small  vessels   in  .-.1   "550.  ils  could  be  wade 

e   ~f  -'r.=    :  3nse« 

In  tl  ^nion  of   Sroup   Berth,  lleet,  at    O6O5 

and  lr  13    -  :    same  formation.      Irou  Fleet  thinks 

=   report  of  175^    ~    "   in 

carriei      ttae  base    ai:..   a-,   has  not 

beea   possible  to  z  ?  land  base'  .rvik. 

probably  Alt    . 

b.  ink  arotection  fc:  operation  cr 

1  ! 

-36S-  :::  1111111.1 


CONFIDENTIAL 
28  Jul.  1943 

'c,    A  demonstration  similar  to  the  movements  on 
8  and  9  Jul, 

According  to  radio  intelligence,  the  radio  guardship  of  the 
eastbound  formation  "Distaff"  reported  at  1020  1  contact  plane 
in  AF  7568  and,  at  1515,  2  more  contact  planes  near  the  forma- 
tion on  course  20°  in  AF  7196,  Another  eastbound  formation 
"Encore"  reported,  at  1105,  1  contact  plane  at  about  62°  N,  hjie 
longitude  being  unintelligible. 

2.    Own  Situation; 

At  2108,  Group  North  placed  the  battle  group  on  3 
hour:s  readiness  and  called  attention  to  the  possibility  of  an 
attack  by  carrier  based  planes.  The  Group  also' requested  5th 
Air  Force,  in  spite  cf  its  expressed  objections, 

a.  to  reconnoiter  from  Stadtlandet  a  sector  be- 
tween 290°  and  0  for  other  enemy  forces  ?.nd 

b.  to  maintain  continuous  patrol  for  a  radius 
of  250  miles  around  the  Narvik  and'Alta  areas  as  protection  a- 
gainst  possible  carrier  operations. 

If  the  heavy  enemy  group  proceeds  further  into  the  Arctic  area, 
Group  North  Fleet  plans  to  send  out  submarines  provided  definite 
information  is  available* 

For  the  II  rth  Coast  of  Norway  and  Arctic  Coast  areas  up  to  North 
Cape  of  Norway  State  of  coastal  alarm  I  was  ordered  during  dark- 
ness and  bad  visibility. 

On  25  and  26  Jul. ,  fire  was  exchanged  between  batteries  in  the 
area  Rybatchi  Peninsula /Pet samo.  On  28  Jul.,  one  Russian  lead 
horned  mine  was  cut  off  Vardoe.   Because  of  the  appearance  of 
enemy  PT  boats  near  Ytteroey,  convoys  between  Aalesound  and 
Bergen  have  been  stopped.   On  25  Jul.,  Norwegians  observed  two 
planes  dropping  parachutes  with  foodstuffs  which  were  picked 
UP  by-  3  men  near  the  electricity  works  in  Kongs fjord.   The 
parachutes  were  recovered. 

Destroyer  Z  "23"  left  Narvik  for  Alta  at  2000  on  27  Jul. 

Fourteen  ships  were  escorted  to  the  north  and  23  ships  to  the 
south. 

Submarine  U  "601"  entered  Hamnerfest.   For  the  brief  report  en 
operation  Aster  II,  see  teletype  1458.  The  boat  observed  bat- 
teries in  Belushiya  Bay  and  great  building  activity  at  Cape 
Morosava  and  at  Cape  Lilie, 

-369-  COiFIDENTIAL 


:  ::e:::ztial 
28  Jul.  1943 

Submarine  U  !,625M  entered  Narvik*  For  brief  report  on  the 
execution  of  operation  i'elke  I  see  teletype  1457«  The  boat 
noted  strong  air  patrols  in  AT  72. 

Submarine  U  "212"  and  U  "639"  put  out  for  raine  operations. 

Group  North  Fleet  plans  tc  transfer  destroyers  "Fr.  Inn"  and 
Z  "31"  to  home  bases,  for  routine  overhaul,  about  the  middle 
of  August  if  the  situation  permits. 

IV.   Skagerrak,  Baltic  Sea  Entrances t  Baltic  Sea: 

1,  Enemy  Situation; 

No  notevrorthy  changes  from  the  daily  routine  were 
indicated  in  Kronstadt  Bay  or  the  area  of  the  islands   in  the 
eastern  part  of  the  Gulf  of  Finland.      Cur  barrage  patrol  "Seeigel* 
was  attacked  by  enemy  planes* 

2.  Own  Situation: 

One  ELM/A-mine  was  cleared  south  of  Kesselce.  The 
Danish  fishing  smack  ANNA  struck. a  mine  and  sank  southwest  of 
Mcen, 

Twelve  troop  transports  and  3  steamers  were  escorted  in  the 
Baltic  Sea. 

Group  North  Fleet  has  placed  the  motor  ships  OSTMARK  and  KAISER 

at  the  disposal  of  1  Command,  Baltic  Sea  or  Commanding 
Admiral  Defenses,  Baltic  for  the  Skagerrak  operation.  (See 
teletype  1547). 

7.    Submarine  T  Jar  fare: 

10    Enemy  Situaticn: 

Several  boats  have  reported  on  the  traffic  situa- 
tion in. the  Caribbean  Sea  in  the  areas  Puerto  Rico"—  Trinidad 
and"  Pararaaraibc.   For  details^  see  Daily  Situation.  It  is  to 
be  assumed  that,  due  to  the  appearance  of  our  submarines,  traf- 
fic on  the  Brazilian  coast  has  mobed  further  our  to  sea. 

2.     wn  Situation; 

No  successes  have  been  reported, 

VI.   Aerial  Warfare: 

British   Isles   and  Vicinity: 

-370-  c:::?::e::il,i 


CONFIDENTIAL 
28  Jul.  1943 

3rd  Air  Force  had  202  planes  in  operation  in  the  West  area  and 
5  planes  in  the  Mediterranean.  Six  Me  410-planes  were  sent  out 
on  free-lance  pursuit  over  the  Bay   of  Biscay  but  made  no  con- 
tact with  the  enemy.  Eight  Me  410-planes  were  sent  out  t« 
attack  London  in  the  night  of  28  Jul.  During  the  day,  several 
enemy  form it ions  totalling  about  150  -  180  planes  flew  into 
northwestern  Germany  and  out  again  after  a  preliminary  sweep 
in  the  Heligoland  Bight.  One  group  advanced  into  the  Osnabrueck 
area-  and  two  other  groups  flew  into  the  area  Osnabrueck,  liagde- 
burg,  Nprdhausen,  Kassel.   Isolated  planes  reached  Brandenburg 
and  Halle.  Forty  more  planes  were  reported  flying  Into  the 
area  Bocholt  -  Buisburg  via  the  Netherlands •  All  the  formations 
were  made  up  of  Fortress es„   They  were  reported  to  be  flying  at 
4  -  8,000  meters  and  at  a  speed  of  400  kilometers  and  over. 
Attacks  were  made  on  Amsterdam,  Zeebrugge,  Kassel  and  Aschers— 
leben.  For  industrial  damage,  see  Daily  Situation. 

In  defensive  operations,  443  flights  were  made  by  our  fighters 
and  heavy  fighters.  Thirty  fortresses  were  shot  down;  13  fight- 
ers were  lost  but  some  of  the  pilots  were  saved. 

During  the  night  of  28  Jul.,  only  small  enemy  forces  entered 
Reich  territory  for  harassing  attacks.  lines  are  suspected 
in  the  sea  area  Texel  -  Ameland, 

Medit erra  ne  an  The  at  re ; 

On  27  Jul.,  a' steamer  of  8,000  -  10,000  BRT  was  heavily 
damaged  at'  S^rracuse,  by  ground  attack  planes.  During  the  night 
of  2?  Jul.,  74  planes  attacked  shipping  targets  off  Gela.   One 
steamer  of  7., 000 'BRT  was  probably  sunk  and  throe  other  freight- 
ers were  damaged. 

During  the  day,  waves  of  enemy  fighter  bombers 'attacked  the 
Straits  of  Messina  and  supply  routes  in  Sicily.  A  few  bombs 
were  dropped  on  Naples  in  the  night  of  28  Jul, 

The  Italian  Air  Force  has  reported  nothing  but  reconnaissance 
activity  since  24  Jul. 

Eastern  Front: 

'On  26  Jul.,  76  enemy  planes  were  shot  down  on  the  Army 
front  r 

For  reconnaissance  operations  by  5"th  Air  Force,  see  Situation 
Northern  Waters,   Contact  with  the  heavy  enemy  formation  was 
lost  to  counteraction  by  fighters  and  heavy  fighters. 


-371-  CONFIDENTIAL 


.  :::z::nzz 

28  Jul.  1943 

711.     Z'lrfare  in  th     ..:  j i~  :rrenean  ere    II.      :   -  :-a: 

1,  Zr._~;.-  Zar.air.e-   in  5i:ilv: 

:"i~e  "e_iej -    t.   i.-.r.l : 

Zr.emy  pressure      .st  the-  XV  Armored  Division  was 
continued      imshed.  The  hills  northeast  of  Leonforte  fell 
into  enemy  hinds  en  27  Jul.  and  J'iccsi   .:.s  lost  oh  28  Jul. 
lifting  is  still  going  on  for  possession  of  Agira,  There  ire 

tanks  and  19  assault  guns  in  aperational  condition,   Fh 
enemy  is  using  phosphorous  shells  which  set  f:     3  the  main 
':---.:   :i  Zie~ 

:i~a:ai~.-.  at  Sea; 

Photographic   reconnaissance  of  the  Sicilian  area 
an  i  26  and  27  Jul,   revealed  no  jrtant   change  from 

previous  days.     For  details  see ' Recoxmaissnacc    Report   No,  3 

by  2nd  Air  Force,   teletype   0920,     In  enemy  fighter— bomber  at- 
tacks in  the  Straits  of  Messina  on  the  afternoon  of  27  Jul., 
one  infantry  landing  boat  was  set  en  fire  by  benbs.     From  noon 
of  27  Jul,  until  dark,    Tacrmina  was   subjected  to  uninterrupted 
fighter-bomber  attack   ind  bombardment  frc  i   the   sea  from  within 
shooting  range.     It  was ' impossible  to  bring  any  coastal  defer. 
into  action.      3n  28  Jul,,   the  coast  north  of  Catania  was   shelled 
from  the  sea.      The  bombarding  vessels  wei     not   identified, 

-crding  to  Italian  reports,    Italian  coastal  batteries    sank  3 
enemy  PT  boats  in  the  Straits  of  Messina, 

Our  PT  boats  returned  at  noon  to  Taranto  from  an  operation.     No 

-  vessels  were   s: -    t    i    oi      t        Bast  coast  of  Sicily  and  no 
shipping  traffic  was   observed  off  Syracuse, 

-    "155  on  26  Jul.,   4  naval  landing  craft    west-southwest  of 
Stromboli  island  were  attacked  by  3  enemy  PT  beats  with  anti- 
aircraft fire  and  .aces.      Several  of  our  boats  received 
light  hits.               jf  the  naval  5    ;r  A ': :   reported  hits  on 
the  enemy  PT  boats.     At  0700  on  28  Jul.,    2  planes  were  shot 
down  during  an  enemy     ir  attack  on  one  naval  landing  craft  and 
one  Siobel-ferry,      Our  vessels  suffered  casualties. 

During  the  of  27  Jul.,    2  motor  r_  ers  were  in  opera- 

tion in  the  Straits  of  Messina.      Ho  special  events  were  reported, 

2.  Snemy  Situation  in  0th  r   Parts   of    bhc    tfediterranean: 

Twenty-three  freighters,   1  tanker  and  patrol  Is 

left  Gibraltar  for  the  r.tic.     Accc  m  Intelligence 

-372-  -    z::z. ::..: 


CONFIDENTIAL 
28  Jul.  1943 

report  several  cruisers  and  destroyers  are  said  to  have  left 
Glasgow  for  Gibraltar. 

Cape  Tres  Forcas  reports 'that  a  transport  convoy  of  7  big  ships 
passed  eastwards  at  1100,  No  other  ship  movements  were  observed 
in  the  Eastern  or  Western  Mediterranean. 

Submarine  -ositions  were  reported  22  miles  south  of  Toulon  and 
10  and  16  miles  east  of  Bastia. 

3«    Own  Situation  in  Other  Parts  of  the  Mediterranean 
Sea  Transport  Situation: 

According  to  a  report  from  Commander,  Submarines, 
Italy,  the  Italian  Navy  is  now  calling  back  all  submarines,  al- 
legedly because  their  fighting  power  is  exhausted*  After  re- 
equipment,  the  boats  are  to  operate  north  of  Sicily  and  be- 
tween Sardinia  and  the  North  African  coast. 

No  special  reports  have  been  received  from  our  submarines. 

Submarine  chaser  "2210"  sank  an  enemy  submarine  off  Ajaccio  after 
the  French  steamer  CHANTEAU  D'VQUEM  (2,536  BRT)  had  been  sunk 
by  an  enemy  submarine  6  miles  southwest  of  Ajaccio  on  27  Jul. 

Two  Italian  destroyers,  5  torpedo  boats,  3  of  our  submarine 
chasers "and  4  motor  minesweepers  wer^  on  duty  in  the  escort 
service,  Eight  steams ers  x-fere  escorted  in  the  island  traffic, 
With  reference  to  the  sinking  of  the  tanker  .'.LBERTO  R.53I0  on 
26  Jul,,  it  is  reported  that  aft^.r  running  aground  off  Prevesa, 
the  ship  hit  one  of  our  mines  7  miles  west  of  the  harbor.   Twehty- 
seven  of  the  46  Germans  on  board  were  rescued. 

According  to  a  report  from  Naval  Group,  '/est,  the  4th  Italian 
Army  has  ordered  a  state  of  preliminary  coastal  alarm  due  to 
the  reporting  of  an  enemy  convoy  west  of  Sardinia, 

4.    Area  Naval  Group  South: 

Aegean: 

Enemy  Situation: 

According  to  Intelligence  report,  there  was  a  com- 
mission of  three  British  naval  officers  in  civilian  colthes  on 
board  the  Turkish  passenger  steamer  KnDES  from  Istabul  to  Izmir 
on  15/16  Jul,,  for  the  purpose  of  inspecting  Turkish  traffic 
facilities,   (See  teletype  1329). 


-373-  CONFIDENTLY 


28  Jul.  1943 

Own  Situation: 

Convoy  RE  ALESS-lJIDRO  with  destroyer  EURO,  en  route 
from  Salonika  to  Rhodes,  was  unsuccessfully  attacked  at  1645 
by  an  enemy  submarine  25  miles  southeast  of  Cassandra  peninsula, 
The  submarine  was  attacked  by  the  air  escort.  An  oil  spot  was 
observed,, 

Other  escort  operations  were  carried  out  without  incident. 

The  dredger  which  was  sunk  in  the  Corinth  Canal  has  been  raised. 

Having  been  informed  on  the  subject  of  torpedo  stowage  at  the 
Suda  base,  the  Fuehrer  has  ordered  that  the  torpedoes  be  stowed 
so  as  to  exclude  the  risk  of  the  entire  stock  being  destroyed 
be  resonance  ignition  in  case  of  explosions    .he  neighborhood. 

3/rour)  South  and  Commanding  Admiral,  Aegean  have  therefore  been 
ordered  by  Naval  Staff  to  take  the  necessary" measures  and  pos- 
siblj'-  to  store  parts  of  the  stock  separately.   For  copy,  see 
teletype  2122  „ 

Black  Sea; 

Enemy  Situation: 

One  submarine  was  located  off  Bieodosia  at  2355  on 
27  Jul,,    and  one   south  so  vthwest  of  Adier  at  C025  on  28  Jul. 
according  to  air  reconnaissance   there  was  another   submarine  150 
miles   east-northeast   of  the  Bosphorus  at   1134. 

>.vn  Situation: 

Nothing  to  report. 

VIII.   Situation  in  the  Far  East: 

No  reports  have  been  received. 


-374-  CC1  FT-AATL.L 


CONFIDENTLY 
29  Jul.  1943 

Situation  in  Italy: 

Stefani  reports  that  the  Italian  cabinet  has  ordered  the  dis- 
solution of  the  Fascist  Party,  The  law  concerning  the  Fascist 
Grand  Council  has  been  revoked  and  it  has  been  decided  to  abolish 
the  Special  Courts  for  the  Security  of  the  State. 

According  to  Radio  Rome,  it  "was  stated  at  a  session  of  the  cab- 
inet that  there  would  be  no  change  in  foreign  policy.  Italian 
comments  on  Churchill's  speech  affirm  that  the  hypocrisy  of 
the  British  claim  to  be  fighting  only  against  Fascism  has  now 
been  unmasked.  British  and  neutral  comments  regard  Churchill's- 
declaration  as  a  threat  that  the  war  against  ItaL*?-  would  be  in-  . 
tensified  until  she  changed  not  only  her  character  but  also  her 
alliance.  According  to  Reuter,  when  asked  whether  Italy  would 
retain  her  former  possessions  in  North  Africa  after  an  "honorable 
capitualtion",  Eden  replied  "no." 

In  a  broadcast  speech,  Roosevelt  too  has  demanded  unconditional 
surrender  by  Italy.  The  US/i' would  be  satisfied  only  with  total 
victory  over  all  her  enemies. 

Naval  Staff,  A aval  Intelligence  Division 'has  informed  the  Group 
Commands  and  Naval  Commands  on  the  Italian  situation  as  follows: 

1,    The  change  of  the  government  has  so  far  taken  place 
without  any  significant  incident sc  A  military  state  of  emer- 
gency has  been  declared.  The  new  government  has  dissolved  the 
Fascist  Party,  revoked  the  law  on  the  Fascist  Grand  Council 
and  transferred  the  functions  of  the  Special  Courts  for  the 
Security  of  the  State  to  military  courts. 

In  a  proclamation  to  the  Italian  people,  General  Eisenhower  has 
declared  that  the  presence  of  the  German  aggressors  on  Italian 
soil  is  the  only  remaining  obstacle  to  peace.  He  asked  that 
all  assistance  to  the  German  forces  be  with  held  and  promised 
peace  on  honorable  terms.   If  Allied  prisoners  in  Italy  were 
handed  back  and  not  sent  to  Germany,  Italian  prisoners  would 
be  allowed  to  return  home* 

Demonstrations  for  the  King  and  for  the  new  Mead  of  the  Govern- 
ment continue.  Rome  is  bef lagged,, 

In  several  cases,  Italian  authorities  have  again  confirmed  to 
German  authorities  in  Rome  and  in  the  Balkans,  their  anxiety 
to  cooperate ■ 

Conference  on  the  Situation  with  Chief,  Naval  Staff: 


-375-  CONFIDENTIAL 


CONFIDENTIAL 
29  Jul.  1943 

I.  Chief,  Naval  Staff,  Quartermaster  Division  referred  to 

a  report  from  Commanding  Admiral,  Submarines  to  the  effect  that 
the  situation  at  Hamburg  necessitates  the  removal  of  all  ships 
not  already  destroyed  as  it  is  planned  to  evacuate  Hamburg  com- 
pletely.  The  transfer  of  the  submarine  base  calls  for  a  deci- 
sion* Chief,  Naval  Staff  ruled  that  further  clarification  of 
the  position  must  be  awaited*  Only  the  two  Walther-Submarines 
in  the  Blohm  and  Boss  yards  should  be  transferred  as  soon  as 
possible. 

In  regard  to  the  request  of  German  Naval  Command,  Italy  for  two 
Naval  Artillery  detachments  to  be  assigned'  for  the  defense  of 
the  Straits  of  Messina,  Chief,  Naval  Staff,  Quartermaster  Di- 
vision suggested  that  the  detachments  be  left  in  the  Toulon  area< 

Concerning  the  allotment  to  the  Mediterranean  of  new  naval  land- 
ing craft  and  naval  fishing  smacks,  as  they  become  available, 
Chief,  Naval  Staff  directed  that,  as  a  general  rule,  only  re- 
placements for  losses  should  be  sent  to  the  Italian  area  and 
that  all  other  vessels  of  the  above-mentioned  types  should  be 
transferred  to  the  Eastern  ^mediterranean  and  the  Black  Sea« 

Conference  in  a  highly  restricted  circle: 

II.  Report  by  Chief,  Naval  Staff,  Operations  Division,  Opera- 
tions Branch: 

a.  -   Transfer  of  torpedo  boats  T  "26"  and  T  "27"  to  the 
West  area,  as  per  order  l/Skl  I  op  2109/43  Gkdos.  Chefs.  Copy 
in  War  Diary,  Part  C  Vol.d,  Naval  S^aff  approved  the  transfer 
of  both  boats  together, 

b;    In  accordance  with  the  suggestion  of  Commanding 
Admiral,  Naval  Group  West  (see  War  Diary  25  Jul.),  Chief, 
Naval  Staff  approved  the  restriction  of  torpedo  boat  escort 
for  the  V.quila"  submarines  up  to  8°  W.  (see  T/P  1301), 

c.  Fuehre